IRS could owe you $500 from the first $1200 stimulus package – but you only have until September 30 to claim it

THE IRS could owe many Americans $500 from the first stimulus – but they need to claim it by September 30.

The cash is owed to those who don’t normally file a federal tax return or receive certain federal benefits.

President Trump signed the CARES Act the largest-ever US financial stimulus package, worth $2tn, as the America began grappling with the coronavirus pandemic.

The act allows for a $500 allowance per dependent child on top of the $1,200 cap for single filers and up to $2,400 for couples who file jointly. 

But if you don’t normally file a federal return, because of low earnings, the IRS doesn’t know if they have children who qualify them for the $500.

It comes negotiations have seemingly hit a standstill between Trade Secretary Steve Mnuchin and House Speaker Nancy Pelosi over a second stimulus check.

Despite stimulus payments were sent automatically, those parents still must use the non-filers tool to claim the additional funds for their eligible dependent children.

More than 7 million people may so far have used the non-filers tool to claim a stimulus payment, the IRS says.

You have until September 30 to use the IRS' nonfilers tool to submit information on your dependents and correct any errors from the first time around, according to CNET.

If you filed a return for 2018 or 2019, you don’t have to use the non-filers tool, the Washington Post reports.

That’s also the case if receive Social Security retirement, survivor or disability benefits, Supplemental Security Income (SSI), Railroad Retirement benefits or Veterans Affairs benefits.

Payments to federal beneficiaries is automatic and if you have not yet received the money, it may be on the way.

But confusingly people who receive federal benefits and have children under 17 still must use the non-filers tool to claim the extra $500 stimulus payment.

On Friday Nancy Pelosi spoke about a possibility of a deal before November 3 for second stimulus,

"I'm completely optimistic," Pelosi told CNN of another stimulus deal.

She slammed a $500billion proposal made by Republicans on Thursday, that was rejected during a Senate vote.

President Trump accused Pelosi and Democrats of rejecting the bill in a move to hurt his chances of re-election.

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