Economic impact payments: What you need to know!

On March 30, 2020, the Treasury Department and the Internal Revenue Service announced that distribution of economic stimulus payments would begin in the next three weeks and 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 and up to $500 for each qualifying child.

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.

Here’s who won’t get a stimulus check:

• Single individuals making more than $99,000 (starts phasing out at $75,000).
• Married couples making more than $198,000 (starts phasing out at $150,000).
• Children who are 18 years old or younger.
• College students between age 18 and 24 that are being claimed as dependents on their parent’s tax return.
• Nonresident aliens.
• People who haven’t filed 2018 and 2019 tax returns.

How will the IRS know where to send my payment?

If you gave the IRS your banking information when you filed your 2018 or 2019 tax return, that’s where they will deposit your stimulus check. That method should over most filers.

The IRS does not have my direct deposit information. What can I do?

If the IRS doesn’t have your banking information, they will mail your check to the address on the tax return. According to the legislation, the IRS has until the end of 2020 to transfer the payments.

If you haven’t filed a tax return for 2019.

You should know that the IRS will rely on your 2018 forms to get your contact information and look at your adjusted gross income to see if you qualify. IRS will also use the banking information from the 2018 return.

I am not typically required to file a tax return. Can I still receive my payment?

If you are on Social Security and haven’t filed a tax return for a few years, the Treasury Department said that you will not be required to file a simple tax return to receive a stimulus check.

If you need to file a tax return. How long are the economic impact payments available?

If you haven’t filed for either 2018 or 2019, you MUST file at least a simple return immediately. This will qualify you to receive the stimulus. Know that the economic impact payments will be available throughout the rest of 2020. Please contact us and we will be happy to assist you.

Typically self-employed people, freelancers, and contractors can't apply for unemployment. This bill creates a new temporary Pandemic Unemployment Assistance program through the end of the year to help people who lose work as a direct result of this public health emergency.

I have heard that I will have to pay the Stimulus payment back on my 2020 taxes:

The stimulus payments are essentially an advance on your tax refund for 2020. You will report the credit to reduce the taxes on your 2020 tax return, since however, you already received the payment, there will be an offset and the credit will basically wash itself out to avoid double dipping.

What is the Status of my Stimulus Payment?

The IRS now has a website to assist in helping you get your Economic Impact Payment.The payments, also referred to by some as Stimulus Payments, are automatic for most taxpayers. No further action is needed by taxpayers who filed tax returns in 2018 and 2019 and most seniors and retirees.

Filers: Get Your Payment

Use the "Get My Payment" application to:

• Check your payment status
• Confirm your payment type: direct deposit or check
• Enter your bank account information for direct deposit if we don't have your direct deposit information and we haven't sent your payment yet

https://www.irs.gov/coronavirus/get-my-payment

Update your bank account or mailing address

• If IRS does’t have your direct deposit information from your 2018 or 2019 return – and hasn’t yet sent your payment – use the Get My Payment application to let them know where to send your direct deposit.
• 2019 Filers: IRS will send your payment using the information you provided with your 2019 tax return. You will not be able to change it.
• 2018 Filers: If you need to change your account information or mailing address, file your 2019 taxes electronically as soon as possible. That is the only way to let IRS know your new information.

Note: IRS is not currently able to process individual paper tax returns due to the COVID-19 outbreak.

Stimulus for Non-Filers

Enter Your Payment Info Here

If you don’t file taxes, use the "Non-Filers: Enter Your Payment Info Here" application to provide simple information so you can get your payment.

You should use this application if:

• You did not file a 2018 or 2019 federal income tax return because your gross income was under $12,200 ($24,400 for married couples). This includes people who had no income. Or
• You weren’t required to file a 2018 or 2019 federal income tax return for other reasons.

Do not use this application if you receive the benefits below. If you receive these benefits, we already have your information and you will receive $1,200.

• Social Security retirement, disability (SSDI), survivor benefits, Supplemental Security Income (SSI)
• Recipients of Veterans Affairs benefits
• Railroad Retirement and Survivor Benefits

Special note: People in these groups who have qualifying children under age 17 can use this application to claim the $500 payment per child.

https://www.irs.gov/coronavirus/non-filers-enter-payment-info-here

Special alert: For benefit recipients who don’t file a tax return and have dependents:

SSA, RRB recipients with eligible children need to act by Wednesday to quickly add money to their automatic Economic Impact Payment; IRS asks for help in the ‘Plus $500 Push’

WASHINGTON – The Internal Revenue Service today issued a special alert for several groups of federal benefit recipients to act by this Wednesday, April 22, if they didn’t file a tax return in 2018 or 2019 and have dependents so they can quickly receive the full amount of their Economic Impact Payment.

Their $1,200 payments will be issued soon and, in order to add the $500 per eligible child amount to these payments, the IRS needs the dependent information before the payments are issued. Otherwise, their payment at this time will be $1,200 and, by law, the additional $500 per eligible child amount would be paid in association with a return filing for tax year 2020.

Economic Injury Disaster Loan or EIDL