In response to the COVID-19 pandemic, most taxpayers will receive financial relief in the form of Economic Impact Payments, or EIP. These payments are set to be deposited into taxpayer's bank accounts directly from the IRS. For those without direct deposit information on file with the IRS, they will receive their EIP as a mailed check, which for some taxpayers could take months.
With Economic Impact Payment deposits on the way, more taxpayers are wanting to get their direct deposit information over to the IRS to avoid waiting for a mailed check. For taxpayers with no income to report on a tax return, this was problematic as the IRS does not typically allow returns with no income to be electronically filed. However, the IRS is now allowing these types of Simple Returns to be electronically filed with the taxpayer's banking information included for the sake of receiving their EIP as a direct deposit.
TaxSlayer Pro has also made these changes within our programs. If you have a return that qualifies as a Simple Return for Economic Impact Payments, you will now be able to file these electronically through us with your taxpayer's direct deposit information attached.
Step 1: To send these simple returns electronically, you will need to make sure first you have the most recent Desktop Update. The latest update has removed the e-File block for zero income returns.
Step 2: After ensuring you've received the most recent update, you will need to create a return that either has a filing status of Single or Married Filing Joint. The IRS will not accept the Simple Return if it has any other filing status.
Step 3: In order for the return to be considered a simple return, you will not enter any income. Complete the basic information section and the healthcare sections only.
Step 4: Once you've completed the basic information and healthcare section, go into the Mark Return Electronic Menu. You will see the option for Direct Deposit (EIP2020). Selecting that e-File type will allow you to enter your taxpayer's banking information. When done, you will be able to transmit this return as you would any other return.