Guam DRT provides information about the Economic Impact Payments

On April 8, ChST, the Guam Department of Revenue and Taxation released basic information regarding the 2020 Recovery Rebates for Individuals (“Economic Impact Payments”) as they relate to Guam taxpayers. Notably, the April 8 announcement does not provide any information as to when DRT will begin distributing economic impact payments. Nor does it provide any information about how DRT will distribute payments to individuals who did not file a tax return in 2018 or do not typically file a tax return. The April 8 announcement confirmed the following:

Eligibility for the Economic Impact Payment

Guam tax filers with adjusted gross income up to $75,000 for individuals, up to $112,500 for filers who filed as head of household, and up to $150,000 for married couples filing joint returns will receive the full payment. For filers with income above those amounts, the payment amount is reduced by $5 for each $100 above the $75,000/$112,500/$150,000 thresholds. This reduction applies to the economic impact payment for a qualifying child. Single filers with income exceeding $99,000 and $198,000 for joint filers with no children are not eligible.

Some taxpayers may not qualify for an economic impact payment. Taxpayers will not qualify if:

1.        they have income in excess of the income thresholds;

2.        the taxpayer can be claimed as a dependent on someone else’s return;

3.        the taxpayer does not have a valid Social Security number or Adoption Taxpayer Identification number; or

4.        the taxpayer is a nonresident alien

Issuance of the Economic Impact Payment

Eligible taxpayers who filed tax returns for either 2019 or 2018 will automatically receive an economic impact payment of up to $1,200 for individuals or $2,400 for married couples and up to $500 for each qualifying child. As noted above, the payment amount will phase out based on income thresholds. Taxpayers who have filed either a 2018 or 2019 income tax return do not need to take any action. The DRT will calculate and automatically send the economic impact payment to those eligible. The DRT will use information from the 2018 tax filing to determine eligibility. Taxpayers whose filing status has changed, from their 2018 income tax filing, due to marital status, adjusted gross income, or number of dependents, should file their 2019 income tax return to reflect the correct issuance of the economic impact payment.