Federal officials have announced that Americans will begin receiving the economic stimulus payments Congress passed last month within a couple of weeks, but many Americans may be wondering if, when and how they will receive those payments. The Internal Revenue Service (IRS) has provided some information addressing these questions. According to estimates, the first payments should be issued sometime during the third week in April. Below is some information taken from the IRS to answer the most pressing questions about the stimulus payments.
Who is Eligible?
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.
Some rumors have been going around on social media that these payments are loans that Americans will have to pay back, but this is false information and no one will have to pay back the stimulus payment they receive.
How the Payments will be Received
The vast majority of people do not need to take any action. The IRS will calculate and automatically send the economic impact payment to those eligible.
For people who have already filed their 2019 tax returns, the IRS will use this information to calculate the payment amount. 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. The economic impact payment will be deposited directly into the same banking account reflected on the return filed.
Providing Account Information
In the coming weeks, Treasury plans to develop a web-based portal for individuals to provide their banking information to the IRS online, so that individuals can receive payments immediately as opposed to checks in the mail.
Social Security Recipients who are Not Required to File Tax Returns will Still Receive Payments
The IRS will use the information on the Form SSA-1099 or Form RRB-1099 to generate Economic Impact Payments to recipients of benefits reflected in the Form SSA-1099 or Form RRB-1099 who are not required to file a tax return and did not file a return for 2018 or 2019. This includes senior citizens, Social Security recipients and railroad retirees who are not otherwise required to file a tax return.
Since the IRS would not have information regarding any dependents for these people, each person would receive $1,200 per person, without the additional amount for any dependents at this time.
Here is a link to the IRS website for non-filers to enter their payment info.
https://www.irs.gov/coronavirus/non-filers-enter-payment-info-here
