Over 31K taxpayers to benefit from first tranche of third stimulus

Finance Secretary David DLG Atalig said yesterday that over 31,000 taxpayers are expected to benefit from the first tranche of the third stimulus payments.

Speaking at a radio news briefing, Atalig said they expect about $85 million in the first distribution of the third stimulus and that they hope that the U.S. Internal Revenue Service would finalize their agreement yesterday so the funds could be coming to the CNMI’s Treasury Office.

“We hope that the third stimulus will be processed in the next week or two,” he said.

Atalig disclosed that they just finalized their agreement with the IRS, and the Division of Revenue Taxation has been making sure and working through some clarification in the agreement.

“We’ve had that all wrapped up,” said Atalig, adding that they expect to send out first the direct deposits to those that have opted to get their stimulus via direct deposit. Right after they’re done with those batches, Finance will be sending out paper checks, he said.

As far as the stimulus program goes, he said, they are using the 2019 tax return data.

Atalig said they do understand that there are some people that have adjusted income, and maybe for the 2019 data they do not qualify for stimulus, and then in 2020, they are when they submit their tax refunds.

“We will be using the 2019 data to get the first batches out right away because we have the data,” he said.

Atalig said they will also have funds available for those eligible to receive stimulus based on the 2020 tax returns.

He said they will be able to release stimulus checks based on those data.

“Those that do not qualify under the 2020 tax return, again, they still have an opportunity to receive some stimulus money. Unfortunately, it won’t be recorded until they submit their 2021 tax returns, which will be next year, next spring,” he said.

Under the stimulus program, it’s a $1,400 per taxpayer with valid social security and for every dependent, which means “pretty much 25 years old and under if they are adult dependents.” He said there is no limitation on how many dependents a taxpayer has.

“They just need to be qualified dependents, meaning they are bound to have a valid social security number,” he said.

Delegate Gregorio Kilili C. Sablan (Ind-MP) earlier said the American Rescue Plan reduces eligibility for the $1,400 rebate so no individual making more than $80,000 qualifies, a change that should have little impact in the Marianas.