Frequently Asked Questions Regarding Direct Payments and Unemployment Insurance
Young filers: Yes, if they are not a dependent, and have already filed for 2019 then IRS will have their information and be able to process them. If it is the second year they have filed then the IRS would be able to use their 2018 or 2019 filings to send them a rebate. If they are a dependent but have not filed for 2018 or 2019 the Secretary of the Treasury is tasked with a public awareness campaign that will provide information with regard to individuals who may not have filed a tax return for taxable year 2018 or 2019.
Foster children: Since this is technically an advance refund for 2020 based on their 2019 income then they should be able to, there is a provision that stipulates that adoption taxpayer identification numbers are accepted for adopted children, so I believe they would be able to claim the advanced refund using the ATIN for foster children. Since this is such a specific case though, with a 2019 filing that does not include these children being the basis of the advanced refund, there may be additional guidance that addresses issues of this specificity.
Unemployment Insurance for normally ineligible institutions: UI is a state-administered program. The CARES Act includes a provision to reduce the amount by which nonprofits, Indian Tribes, and governmental entities are required to reimburse states for benefits paid to their workers who claim unemployment insurance by 50 percent through December 31, 2020. This provision would also allow the Secretary of Labor to issue guidance to states to provide flexibility for employers in making reimbursement payments.
The amount of unemployment they would receive is based on their state eligibility requirements, however, the CARES Act included provisions to provide an additional $600 per week in “federal pandemic unemployment compensation” to individuals receiving unemployment benefits. The extra payment would remain available through July 31, 2020.