Update on the CARES Act: Get my Payment Now for US Expats
From American Int'l Club of Rome Sponsor, Tina Salandra CPA, Expatriate American Tax Division, Numerical LLC
Dear Expat Clients: The ACA reports the IRS has fixed the software issue related to U.S. expats
~Tina Salandra, CPA - Expatriate American Tax Division
ACA update on CARES Act: Get My Payment now functioning. Deadline for providing Direct Deposit information May 13th.
The Get My Payment online tool allows individuals to provide the IRS with their U.S. bank account information for Direct Deposit receipt of their recovery rebate and to track their rebate. Since its launch, the tool has experienced glitches resulting in error messages for many users.
ACA learned from the IRS last week that many of the glitches have been corrected including problems related to the foreign address input fields. Many Americans abroad have reported that they are now able to input their bank information and get updates on their recovery rebate using their foreign address. If after inputting your information into Get My Payment you receive the message, “We don’t have enough information yet,” this does not mean that you are ineligible for a rebate. The message probably indicates that the IRS is still calculating your recovery rebate amount. Eligibility for a recovery rebate is determined by an individual’s filing status (individual or joint) and by their Adjusted Gross Income (AGI). Not everyone will receive the full rebate amount and the amount may be adjusted depending on filing status and AGI - the IRS must calculate the rebate amount based this criteria.
The IRS also announced on Friday, May 8th that the deadline for using Get My Payment to input Direct Deposit information is May 13th. ACA has contacted the IRS and noted that, given the delay in correcting the foreign address input field problems, the IRS should extend the deadline. Americans overseas lost several weeks of time when they could not provide the IRS with this data due to problems with Get My Payment and now only have several days to do so. ACA urges individuals who want to provide their Direct Deposit information via Get My Payment to act quickly. Tracking payments with Get My Payment will still be possible after the May 13th deadline, only the Direct Deposit feature is subject to the deadline.
Some individuals will have issues depositing U.S. checks into their foreign bank account (some foreign banks will not allow this). If you receive a message that your rebate has been processed and a check is being sent to your foreign address or you are unable to provide the IRS with Direct Deposit information, the State Department Federal Credit Union (SDFCU) may be able to help. U.S.-based checks can be deposited into SDFCU bank accounts using the SDFCU mobile app, or by using online banking if the mobile app is not available in your country (30 day wait-period for this feature with new accounts). For more details see: https://www.sdfcu.org/24-hour-banking#online-banking.
Please note: for individuals who are already receiving Social Security benefits there is no need to register your bank account information for direct deposit.
When dealing with coronavirus recovery rebates, which is inherently a tax subject and may entail issues of tax compliance, readers should carefully consider their obligation to be tax compliant. There may be situations where they should consult a tax professional. The ACA Expat Tax Services Directory is an important resource for information.
Disclaimer: This information is provided as a service to fellow US citizens and others to help inform and educate. Content or links provided are not intended, and should not be construed, as professional advice or recommendations. ACA is not responsible for any action taken by readers based on information posted.
~ This Blog post has been provided by our sponsor Tina Salandra CPA. For more information please reach out for more information.
Tina Salandra, CPA
Expatriate American Tax Division