To help stop the spread of Covid-19, many people find themselves without income and wondering when they will receive their Stimulus payment. IRS indicated that payments will begin on April 9th and would continue through September 2020. If you filed your 2019 income tax return already and had your refund directly deposited or your balance due directly debited from your bank account, you will receive your Stimulus payment into that bank account. IRS will use direct deposit/direct debit information from the 2018 return on file if you have not filed your 2019 return.
Not everyone is eligible for a Stimulus payment. Taxpayers who filed single or married filing separate with an adjusted gross income (AGI) up to $75,000, married filing joint up to $150,000 and head of household up to $112,500 qualify. Single, married filing separate and head of household who are under the AGI limit are eligible for $1,200. Married filing joint taxpayers under the AGI limit are eligible for $2,400. Add an additional $500 per child to these amounts for child dependents on the return if under 17.
For single taxpayers with income above $99,000, head of household taxpayers above $135,500 and married filing joint taxpayers above $198,000 will not receive a payment. Between the two limits is the phase-out range and the individuals who will receive a partial payment. The payment is reduced by $5 for each $100 above the AGI limit.
Many older individuals who live on Social Security or with low income are not required to file a tax return. These individuals are eligible for a Stimulus payment. If you fall into this category, you do not have to do anything right now. IRS announced that this payment will come directly from Social Security to these individuals in the manner that their normal benefits are paid. If benefits are paid via direct deposit, the Stimulus payment will come via direct deposit. If benefits are paid via check, the Stimulus payment will come via check.
If you have not provided IRS with bank account information in the past, many worry they will have to wait for a paper check. IRS has indicated they are developing an online system that taxpayers can enter direct deposit information to receive Stimulus payments faster. The link is: https://www.irs.gov/coronavirus/economic-impact-payments. The expected date this system is to be available is April 17th.
At this link, you will be able to:
• check the status of your Stimulus payment,
• confirm your payment type (direct deposit or check)
• provide your bank information to IRS in this new online link.
Paper checks being issued are going to begin with the lower income taxpayers first and the higher income taxpayers last. Do not call the IRS looking for your payment just because others have received theirs. IRS is not going to answer any questions about Stimulus payments until mid-October after all payments have been sent out. This could save you significant time on-hold with IRS only to find out no information.
The Stimulus payment will not be taxable on the 2020 return. It is reportable as an advanced credit for 2020.
IRS will post updates when available. For updated information, please continue to check https://www.irs.gov/coronavirus/economic-impact-payments.
Remember to be patient and kind with one another, we will get through this!
