Filing simple return TY19 (Economic Impact Payment -EIP)

“Simple” Returns – What are They and What You Need to Do to Complete Them

In the coming weeks the Treasury Department plans to distribute automatically economic impact (stimulus) payments, with no action required for most people.  Social Security recipients and railroad retirees who are otherwise not required to file a tax return are automatically eligible and will not be required to file a return.  However, some individuals such as low-income workers and certain veterans and individuals with disabilities s who typically do not file returns will need to submit a “simple” tax return to receive stimulus money. 

Verify Program is at version 2019.029

What information You will need from Taxpayer

To file a “simple” return you will need the following information:

1. Full name and valid work SSN of taxpayer (and spouse if filing jointly)
2. DOB of taxpayer (spouse)
3. Current address
4. Name, DOB, SSNs (or ATINs), and relationship of children under age 17. Children with ITINs do not qualify for stimulus money.
5. Bank account information if requesting direct deposit
6. Determine if the taxpayer is married or single. Only a filing status of “single” or “married filing joint” is allowed.

Do not include on a “simple” return the following:

1. Individuals that do not have a valid work SSN
2. Individuals that can be claimed as a dependent on another’s return
3. Dependents who are ages 17, 18, or Students  from ages 19 to 23
4. A State return. A “simple” return is filed for federal purposes only.  If you need to file a State return, you must file the federal return in the traditional fashion.

How to Start a “Simple” Return

Here is how to complete a “simple” return in the software:

• You will need start on the Client Data Screen. A new checkbox to indicate a “simple” return has been added, located above the Taxpayer Information section.  

When checking this box, the software will calculate the $1 amount for taxable interest needed to file a “simple” return.  If a return is started in Interview Mode, you will notice a new button near the top-right of the page to indicate a “simple” return. 

When selected, you will be navigated from Interview Mode to the Client Data Screen to start the return.  

• Complete the following information on the Client Data Screen:
  • Taxpayer and Spouse (if applicable) information
  • Filing status – Enter either Single or Married filing Joint
  • Address
  • Information for dependent children under age 17
  • Direct deposit information (if possible so that individual to get stimulus quicker)
• Complete Form 8879. For “refund type”, enter either “1” for check or “2” if direct deposit

Other Things to Note When the “Simple” Return Option is Selected

• Only forms allow in this “simple” return are Form 1040 and Form 8879.
• Do not include any income information or deductions on this “simple” return. Other incomes the taxpayer received, such as form W-2 wages, are not to be reported on a “simple” return.   A $1 amount will be automatically included as interest income on the Form 1040 instead.
• A State return is not allowed if you selected the “simple” return option. This “simple” return is a federal document for the sole purpose of allowing the taxpayer to file to receive an Economic Stimulus Payment.
• Filing “simple” returns electronically and including direct deposit information will allow the IRS to process and send the economic impact payment to the taxpayer in the least amount of time. If the direct deposit information is not included, the taxpayer will receive the stimulus amount as a paper check.