Coronavirus Related Economic Impact Payments
Internal Revenue Service announced that the distribution of the economic impact payments will start in the next three weeks and will be distributed automatically, with no action required for most people.
Economic Impact Payments FAQ
Who is eligible for the economic impact payments?
Tax filers with AGI 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. Eligible taxpayers who filed tax returns for either 2019 or 2018 will automatically receive and economic impact payment of up to $1,200 for individuals or $2,400 for married couples. Parents also receive $500 for each qualifying child.
How will the IRS know where to send my payments?
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. If the IRS does not have your direct deposit information, the 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.
What if I am not typically required to file a tax return, Can I still receive my payment?
Yes. People who typically do not file a tax return will need to file a simple tax return to receive an economic impact payment. Low-income taxpayers, senior citizens, Social Security recipients, some veterans and individuals with disabilities who are otherwise not required to file a tax return will not owe tax. IRS.gov/coronavirus will soon provide information instructing people in these groups on how to file a 2019 tax return with simple. But necessary information including their filing status, number of dependents and direct deposit bank account information.
I have not filed my return for 2018 & 2019. Can I still receive an economic impact payment? Yes, the IRS urges anyone with a tax filing obligation who has not yet filed a return for 2018 & 2019 to file as soon as they can to receive an economic impact payment. Taxpayers should include direct deposit banking information on the return. These economic impact payments will be available throughout the rest of 2020.