As a part of the US response to the ongoing Covid-19 pandemic, the Treasury Department and the Internal Revenue Service has announced that the distribution of economic impact payments will begin in the next three weeks. The payments will be distributed automatically, with no action required for most people. 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. Parents also receive $500 for each qualifying child.
Which taxpayers are eligible for the economic impact payment?
Taxpayers with an adjusted gross income of up to $75,000 for single filers and up to $150,000 for married couples filing joint returns will receive the full payment. For taxpayers 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 an adjusted gross income exceeding $99,000 and $198,000 for joint filers with no children are not eligible.
How will the IRS know where to send my payment?
Taxpayers do not need to take any action to receive this payment. The IRS will calculate and automatically send the economic impact payment to those eligible.
For taxpayers who have already filed their 2019 tax returns, the IRS will use this information to calculate the payment amount due to them. For taxpayers 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.
The IRS does not have my direct deposit information. What can I do?
The US 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.
I have not filed my tax return for 2018 or 2019. Can I still receive an economic impact payment?
Yes you can still receive the economic stimulus payment. The IRS urges anyone with a tax filing obligation who has not yet filed a tax return for 2018 or 2019 to file as soon as they can to receive an economic impact payment. Taxpayers should include direct deposit banking information on the return.
I need to file a tax return. How long are the economic impact payments available?
Please contact us to discuss you filing requirements and how we may be able to assist you.