As the IRS rolls out the implementation of the economic impact payments, they are still outlining some of the details on who is eligible and how they receive the checks, but coverage will include foster parents who filed either a tax return for 2018 or 2019 (this year’s income tax filing) and had a claim for a child in foster care. The maximum credit is $1200 per person and $2400 per couple with a $500 credit per child. The payments phase out for individuals making between $75,000 to $99,000 and couples making $150,000 to $199,000.
What Capitol Hill sources told CWLA, if the foster child was claimed on their 2018 or 2019 taxes, then they will automatically be credited for them as a dependent. If the foster parents did not yet file 2019 taxes, then the parents will need to monitor
https://www.irs.gov/newsroom/economic-impact-payments-what-you-need-to-know for a way to apply for a simplified 2019 tax filing form with their dependents. These details are being revised, so individuals are advised to check up the IRS link listed here since this article was written.
In addition to the challenges that youth in foster care need to navigate during this pandemic is how to receive their $1200 check if they are in an independent living or extended foster care situations.
For all individuals who did not file an income tax form in either 2018 or 2019, the IRS is urging anyone with a tax filing obligation which has not yet filed a tax return for 2018 or 2019 to file as soon as they can to receive an economic impact payment.
Taxpayers should include direct deposit banking information on the return since the IRS will deposit checks directly into their accounts if that information is on file. If the IRS does not have the account information, they will mail out checks, which could take months. The Treasury plans to develop a web-based portal for all individuals to provide their banking information to the IRS online so that individuals can receive payments immediately as opposed to checks in the mail.
These developments are changing hourly. On late Wednesday, the IRS announced that senior citizens who did not file taxes in 2018 or 2019 would not have to file in order to receive their payment, and instead, checks will be deposited into their accounts the same way they receive their monthly Social Security checks.
Other challenges for child welfare advocates in helping youth in foster care or transitioning and living independently will be helping them establish a checking account to facilitate getting the much-needed checks. The same population may also need help in applying for unemployment compensation if they have lost their jobs. The unemployment compensation includes a boost of $600 per month on top of the regular benefit, which, in normal times, usually provides a benefit of about 40 percent of average pay. The unemployment package also includes some workers, including contractors and part-time workers, with some benefits.