In speaking with several local residents in the Virgin Islands
recently, it has become very clear that there is a lot of misconception/misinformation
about the covid-19 economic stimulus payment including who is eligible. Seems
like a lot of the confusion could have been abated had the Virgin Islands Administration
and the VI Bureau of Internal Revenue (BIR) opted to mirror the same guidelines
set forth by the IRS on the mainland in regards to distribution and
notification. However it is understandable that the VI BIR does not yet possess
the technology/system to support processing this huge mandate including a way
to capture non-taxpayers’ information short of requiring them to file a tax return
for 2018. Make no mistake, the stimulus program is the same as the one
implemented on the mainland. The only difference is that the stimulus money was
sent directly to the VI government for distribution instead of being
distributed directly by the federal government.
The biggest confusion seems to be about who is eligible to
receive the stimulus payment because the government is stressing that the money
is for “tax paying residents”. So I’ve
gathered some basic information to help people get some clarity. Despite the
fact that both the Governor and the Director of BIR are stressing that the
funds are for “tax paying residents”, rest assured that non-tax paying residents
are also eligible to receive the stimulus payment if they meet the following criteria:
1) is a resident of the US Virgin Islands, 2) have a valid social security
number, and 3) no one can claim them as a dependent. However in order to get
the payment, they MUST complete a 2018 Tax Return.
The following still clips were taken directly from a video released
by The Press Box on Thursday May 7 2020 at 5:30 PM which is on Facebook
featuring Joel Lee, Director of the USVI Bureau of Internal Revenue who went
over the terms of the stimulus payments. In it Director Lee stresses that tax payers
must complete a 2018 tax return in order to get the stimulus payment. You can watch the entire video by clicking this link Director Joel Lee - VI BIR Discuss Stimulus Program
 |
| Click to watch entire video |
You can also catch the Governor’s press conference/briefing (5/14/20)
at:
Who is Eligible based
on US IRS Criteria:
U.S. citizens, permanent residents and qualifying resident
aliens who:
- Have a valid Social Security number,
- Could not be claimed as a dependent of another taxpayer, and
- Had adjusted gross income under certain limits.
Who is Eligible based
on VI BIR Criteria:
Virgin Islands Resident Who:
- Filed a 2018 Tax Return
- Has a valid social Security number
- Is not claimed on another person’s return
- Meets the income thresholds based on the filing status.
As you can see, they both have the same/similar criteria
except for one - the VI added “filed a 2018 Tax Return” as a criteria which makes
it appear as if having filed a 2018 tax return was an eligibility criteria
instead of it being a means to obtain the information they need to
process the payment. There lies the confusion. “Filed a 2018 Tax Return” should not be listed
as an eligibility criteria but rather should be listed under “How do I receive
a stimulus check” which by the way it does appear on the list under that
category on the video slide. If you were required to file a 2018 tax return and
already did so there is no need for you to do anything – from what I gathered
from the video. However if you did not file a 2018 return for any reason, i.e.,
late filing, not required to file due to low income, social security benefits recipient,
no income, etc., then you MUST submit a 2018 1040 form in order to get a check.
You can obtain a copy of the 2018 Tax form by clicking on the link: 2018 1040 Form.
Fill it out and mail or drop it off at your local tax office for processing.
The sooner the better.
Unlike the mainland IRS who automatically sent out payments
to tax payers, social security recipients, disability benefit recipients,
veterans, etc., the VI is requiring this segment of the population to also submit
a tax return as well in order to get the stimulus payment. Director Lee cites
that they do not have access to social security records to be able to send out
the payments. I also heard reports that the BIR is asking social security
benefit recipients to provide a letter from Social Security to verify that they
are receiving benefits. This in and of itself, if true, creates another
hardship because one resident shared with me that the social security office is
closed due to the corvid-19 guidelines. She
also shared with me that as a result of the social security office being closed
she attempted to submit her 2019 benefit statement instead of the letter and it
was declined because they told her they want her 2018 statement.
Interestingly enough Governor Bryan said in today’s press
conference that they have a list from social security with names of recipients
which they are cross referencing to ensure that efforts are not duplicated. A
bit confusing when you think about it. How could benefits be duplicated if the
VI is solely responsible for distributing the stimulus payment to social
security benefit recipients? Also if they already have a list of social
security recipient list, why do they need a verification letter? Besides that,
what purpose does it serve for social security benefit recipients to submit a
letter from social security when all the BIR needs is their address to send the
check? I can’t imagine that there is anyone on social security who is receiving
more than the criteria limits.
Seems to me that the VI Government, as per usual, is creating more work for itself and/or just making it extremely difficult for residents to claim their check so that they will be discouraged to pursue the application process. The more I think about it, the more questions I have and more anxious I get as to how effective this process will be. Sure the tax filers will get their stimulus check because they are already in the system but what about the non-filers including those who are on public assistance, who by the way if they meet the eligibility criteria above is eligible to receive a check.
My fear is that many will not receive a check because they
did not and/will not submit a tax form either because they are not aware of the
stipulation or they are otherwise unable to do so, i.e., illness, age
constraints, don’t believe they are eligible/qualify for the payment, etc. The same
holds true for non-filers who may be under the impression, based on what is
being shared, that only “tax payers” are eligible to receive a stimulus payment.
A massive effort is needed to inform the
public on the process and help them file for the stimulus payment because people
need to know this information. It is important to reiterate that VI residents
who did not have any income to report in 2018 and who fits the eligibility criteria
is eligible to receive a check and MUST file a 2018 tax return in order to get
a check. It is equally important to mention that when completing the 1040 form
for 2018, non-filers are asked to put a $1 on the Interest Income line which is
line 2b. Not sure what purpose that serves but hey, this is the VI we taking
about. When does anything ever really make sense? Just do it. Don’t want to
give them any reason to reject or decline the submission. Oh and make sure you print and write legible/clearly.
What would have been an effective tool to help expedite the
process was if the BIR had adopted a similar method like their counterpart did in
the US to capture basic information on-line or paper form to collect and/or process
the payment, i.e., name, address, social security number and bank information
if applicable. No need to enter ANY income information. I initially thought
that filing a 2018 tax return in order to get the stimulus payment seemed crazy,
especially since no income was being reported. But after realizing that the BIR
needs a way to capture information for non-filers and social security recipients
in order to process payment, I am on board - kindda. However, I feel if VI BIR
would step into the 21st century, technology wise, with on-line options
so that residents can, not only be able to fill out tax forms on-line, but also
e-filing their return, the filing process would be so much more efficient.
Governor Bryan also announced in today’s press conference
that thousands of stimulus checks has already been distributed, but it has been
reported that the mass amount of those checks went to St. Thomas tax paying residents.
If true, it only further confirms the perception that St. Thomas residents get preferential
treatment.
The VI BIR is open to receive tax returns as well as answer
questions via the phone. St. Croix residents can call (340) 773-1014 and St.
Thomas residents can call (340) 715-1040. You can also call your Delegate to Congress,
Stacey Plaskett at (202) 225-1790 to air any concerns you may have as to the
handling and/or distribution of funds. It is my understanding that she is currently
in the Territory. Attempts to reach her at her local office proved futile,
however you may have better luck. (340) 774-4408 St. Thomas office; (340)
778-5900 St. Croix office.
18. Hopefully this helped answer some of your questions. God knows I still have plenty of questions. Like are other US territories having this much confusion processing their checks? I’m just saying. I got issues – what about you? )i(
#igotissues #yahsdaughter863 #usvi #stimulus #VIBIR #vigovernment #yaminah89 #stayvigilant #wakeup #tax #eligible #money #check #irs #congress #federalgov
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