Stimulus Checks Reminder
Many people have raised great questions about these stimulus checks from the government. Below are a few of the top questions you are asking, but if I did not answer your question below, the IRS has released a comprehensive list of FAQs here.
Who is eligible for the economic impact payment?
Tax filers with adjusted gross income up to $75,000 for individuals 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/$150,000 thresholds. Single filers with income exceeding $99,000 and $198,000 for joint filers with no children are not eligible. Social Security recipients and railroad retirees who are otherwise not required to file a tax return are also eligible and will not be required to file a return.
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.
How will the IRS know where to send my payment?
The House Committee on Ways & Means expects that the IRS will issue 60 million payments to Americans through direct deposit in mid-April (likely, next week). The IRS will make these initial payments to taxpayers whose direct deposit information is available from their 2018 or 2019 tax returns.
The IRS does not have my direct deposit information. What can I do?
The IRS should begin sending out paper checks about 3 weeks after the first round of payments are made (ideally the week of May 4th) in reverse adjusted gross income order. This order will ensure that low-income taxpayers receive a stimulus payment first. Unfortunately, the IRS expects that this process could take weeks. Americans who file a tax return or share their direct deposit information with the IRS can largely avoid this painstaking process.
Nonfilers may need to file a “simple tax return” with their direct deposit information if they want to receive their rebates quickly. The simple tax return should ask nonfilers to answer a few basic questions about their name, social security number, dependents, and deposit information.
The IRS will share more information about the simple tax return soon here. These economic impact payments will be available throughout the rest of 2020.
