The Treasury Department and IRS have announced more information around the distribution of the government stimulus package/checks, or, as they’re calling it, economic impact payments (EIP). For the most up-to-date information go here.
Here is some helpful information from that website:
When are stimulus checks anticipated to go out?
On March 30, the IRS said it anticipates payments will be distributed in the next 3 weeks.
How much will the stimulus payments be and who gets one?
Tax filers who filed returns for either 2019 or 2018 will receive a stimulus payment of up to $1,200 for individuals or up to $2,400 for married couples. The amount may vary depending on your annual adjusted gross income though.
Parents may also receive up to $500 for each qualifying child.
Tax filers who earn an adjusted gross income of up to $75,000 a year for individuals and up to $150,000 a year 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. Filers with income exceeding $99,000 for individuals or $198,000 for joint filers with no children are not eligible.
The IRS will calculate the payment based on your 2019 tax return or, for those who have not yet filed their return for 2019, the IRS will use information from their 2018 tax filing to calculate the payment.
We’ve broken it out into these tables to make it easier to read:
|Adjusted Gross Income:
||$75,000 or less
||Subtract $5 for every $100 over $75k you earn
MARRIED JOINT FILING COUPLES
|Adjusted Gross Income:
||$150,000 or less
||Subtract $5 for every $100 over $150k you earn
Parents may receive up to $500 for each qualifying child.
How will the IRS know where to send my payment?
The economic impact payment will be deposited directly into the same banking account reflected on the return filed.
What if the IRS doesn’t have my direct deposit information?
The Treasury Department is developing a web-based portal over the next couple of weeks where you can provide your account information to the IRS online, so that you can receive your stimulus payment by Direct Deposit as opposed to a check in the mail.
Can I still receive my payment if I don’t normally file a tax return?
Yes, low-income taxpayers and other people who typically do not file a tax return will need to file an abbreviated tax return to receive an economic impact payment. You will not owe tax on this simple tax return.
The IRS has provided information on this page.
You will be asked to share the following information:
- Filing status
- Number of dependents
- Direct deposit account information
The U.S. Department of the Treasury and the Internal Revenue Service have stated that Social Security beneficiaries who are not typically required to file tax returns will not need to file an abbreviated tax return to receive an Economic Impact Payment. Instead, payments will be automatically deposited into their bank accounts or they will receive a paper check, just as they normally receive their benefits.
How long will the economic impact payments be available?
These one-time payments will be available throughout the rest of 2020.
Where can I get more information?
The IRS will post all important information on IRS.gov/coronavirus as soon as it becomes available. Please continue to check that page for updates.