Approximately 20,000 checks worth a total of $53.8 million for the first batch of the third economic impact payment (EIP3) are expected to reach the pockets of Guam taxpayers starting next week, the Department of Revenue and Taxation announced Saturday.
The $53.8 million formed part of the $241 million in EIP3 funds approved for Guam under the American Rescue Plan Act of 2021 signed into law by President Biden on March 11.
The stimulus funds will be another shot in the arm for Guam's economy, which has been stagnant due to the tourism freeze triggered by the Covid-19 pandemic.
DRT said it processed the first batch of the payments immediately after the funds were transferred by the U.S. Treasury to Guam today.
“We have an unwavering commitment to take care of our people, most especially during this public health emergency,” said Gov. Lourdes A. Leon Guerrero on Saturday morning.
Those eligible under the EIP3 will automatically receive up to $1,400 for individuals or $2,800 for married couples, plus $1,400 for each dependent.
Unlike the first two sets of EIP in 2020, families will get a payment for all their dependents claimed on a tax return, not just their qualifying children under 17.
According to DRT, a taxpayer normally qualifies for the full amount if they have an adjusted gross income of up to $75,000 for singles and married persons filing a separate return up to $112,500 for heads of household and up to $150,000 for married couples filing joint returns and surviving spouses.
Payment amounts are reduced for filers with incomes above those levels.
“Even as we were waiting on approval for our plan, our team was working behind the scenes to make sure that payments would be able to be processed as soon as funds were received," the governor said.
"We are thankful to the Internal Revenue Service and the U.S. Treasury for working with DRT, and to the DRT team for working tirelessly to make sure that these payments are ready to release early this week," the governor added.
In addition to the funding for payments of EIP 3 for Guam residents, DRT also stands to receive approximately $347,000 to cover administrative expenses for the program.
“For this round of payments, we were able to receive funding to cover the cost to administer the EIP Program. We are thankful to Congressman San Nicolas for his assistance with this,” said Lt. Gov. Joshua F. Tenorio. “This is critical as we work to maintain our general fund."
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DRT answers the following frequently asked questions:
Who is eligible for the third Economic ImpactPayment and what incomes qualify?
Generally, if you are a U.S. citizen or U.S. resident alien and are a resident of Guam, you are eligible for the full amount of the third economic Impact Paymentif you (and your spouse if filing a joint return) are not a dependent of another taxpayer and have a valid Social Security number(see an exception when married filing jointly) and your adjusted gross income (AGI) on your tax return does not exceed: · $150,000 if married and filing a joint return or if filing as a qualifying widow or widower · $112,500 if filing as head of household or · $75,000 for eligible individuals using any other filing statuses, such as single filers and married people filing separate returns. Payments will be phased out – or reduced -- above those AGI amounts. This means taxpayers will not receive the third payment if their AGI exceeds:
· $160,000 if married and filing a joint return or if filing as a qualifying widow or widower
· $120,000 if filing as head of household or
· $80,000 for eligible individuals using other filing statuses, such as single filers and married people filing separate returns.
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For example, a single person with no dependents and an AGI of $77,500 will normally get a $700 payment (half the full amount).
A married couple with two dependents and an AGI of $155,000 will generally get a payment of $2,800 (again, half the full amount).
Filers with incomes of at least $80,000 (single and married filing separately), $120,000 (head of household) and $160,000 (married filing joint and surviving spouse)will get no payment based on the law. Determining eligibility for EIP3 Most eligible people will get the third Economic Impact Payment automatically and won't need to take additional action. DRT will use available information to determine eligibility and issue the third payment to eligible people who: · Filed and validly processed 2020 tax return.
· Filed and validly processed 2019 tax return if the 2020 return has not been submitted or validly processed yet.
· Did not file a 2020 or 2019 tax return but filed an Economic Impact Payment for Non-Filers (EIP-NF) form on or before November 21, 2020.
· Are federal benefit recipients as of December 31, 2020, who do not usually file a tax return and received Social Security and Railroad Retirement Board benefits, Supplemental Security Income (SSI) and veteran benefit recipients in 2020. DRT will use the information provided from IRS to determine eligibility for EIP-3.
What do I need to do to get my third payment?
In order to qualify for EIP3, you must meet the eligibility requirements and must file either a 2020 or 2019 tax return or a Guam Form EIP-NF by November 21, 2020. If you have already filed any of these returns, no further action is needed.
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How do I find out if the DRT is sending me a payment? DRT will announce soon when people can check the status of their third payment by using the Lookup Status of EIP Payment tool, availableat https://www.myguamtax.com/ . Will people receive a paper check or a direct deposit? DRT will use data already in its systems to send the third stimulus payments. Taxpayers who have a validly filed and processed return who elected to be paid by direct deposit on their tax return will receive the payment that way.
Those without current direct deposit information on file will receive a paper check.
DRT encourages people to check utilizing the Lookup Status of EIP Payment tool. The tool can be found on https://www.myguamtax.com/ and will be updated on a regular basis. People who don't receive a direct deposit should watch their mail for a paper check.The form of payment for the third stimulus paymentmay differ from the first two. How are married couples affected, if only one spouse has a Social Security number? As with EIP2, joint filers where only one spouse has a Social Security number (SSN) will normally get the third payment. This means that these families will now get a payment covering any family member who has a work-eligible SSN.
For taxpayers who file jointly with their spouse and only one individual has a valid SSN, the spouse with a valid SSN will receive up to a $1,400 third payment and up to $1,400 for each qualifying dependent claimed on the 2020 tax return.
If either spouse is an active member of the U.S. Armed Forces at any time during the taxable year, only one spouse needs to have a valid SSN for the couple to receive up to $2,800 for themselves in the third stimulus payment.
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Is any action needed by Social Security beneficiaries, railroad retirees and those receiving veterans' benefits who are not typically required to file a tax return? Most Social Security retirement and disability beneficiaries, railroad retirees and those who received veterans' benefits in 2020 should not need to take any action to receive a payment. As with the first two stimulus payments, DRT will use information provided from IRS to determine eligibility for EIP-3.
Some people who will receive an automatic third payment based on their federal benefits information may need to file a 2020 tax return even if they don't usually file. If your third payment does not include a payment for your qualified dependent who did not receive the third payment, you must file a 2020 tax return to be considered for an additional third payment even if you don't normally file.
If you're eligible and didn't get a first or second Economic Impact Payment or got less than the full amounts, you may be eligible for the 2020 Recovery Rebate Credit but you'll need to file a 2020 tax return. See the special section on IRS.gov:Claiming the 2020 RecoveryRebate Credit if you arent required to file a tax return. I didn't file a 2019 or a Guam Form EIP-NF by Nov. 21, 2020. Am I eligible for a payment? No. The only exception will be for the Social Security beneficiaries, railroad retirees and those receiving veterans' benefits who are not typically required to file a tax return.
If eligible, you can still receive the payment by filing a 2020 IncomeTax return. DRT urges people who don't normally file a tax return and haven't received any stimulus payments to look into their filing options.
The deadline for Guam DRT to issue EIP 3 payments for validly processed 2020 returns is December 31, 2021. If your return is not validly filed and processed in time to issue your payment, you may be eligible to claim the 2021 RecoveryRebate Credit (for the 3rd stimulus only) when you file your 2021 return. DRT encourages people to e-file their Forms 1040 if they qualify to on https://www.myguamtax.com/ and to seek a trusted tax professional with any filing questions. Will a deceased individual receive an EIP3 payment? Payment won’t be issued to someone who has died before Jan. 1, 2021. If you filed a joint return in 2020 and your spouse died before Jan. 1, 2021, you won’t receive a $1,400 payment for your deceased spouse, but you'll still be issued up to $1,400 for you and up to $1,400 for any qualifying children if all other eligibility criteria are met. Will people who receive a payment get a notice from the DRT? Notices are not required for EIP3. DRT encourages taxpayers to check the status of their EIP3 payment at https://www.myguamtax.com/.