IRS outlines stimulus information

irs-logoWASHINGTON, April 3, 2020—Distribution of economic impact payments will begin in the next three weeks according to the Treasury Department and Internal Revenue Service.

These payments will be distributed automatically with no action required for most people.

However, some taxpayers who typically do not file returns will need to submit a simple tax return to receive the economic impact payment.

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.

Where to send payments

Most 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.

For those who do not use direct deposit, in the coming weeks, the Treasury Department plans to develop a web-based portal for individuals to provide their banking information to the IRS online so individuals can receive payments immediately as opposed to checks in the mail.

Not typically required to file a tax return

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.

Didn’t file a tax return for 2018 or 2019

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.

Length of payment availability

For those concerned about visiting a tax professional or local community organization in person to get help with a tax return, these economic impact payments will be available throughout the rest of 2020.

More information will be found at IRS.gov/coronavirus as soon as it becomes available.

IRS news release

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s