On April 1, 2020, The Treasury Department and the IRS announced the distribution of the economic impact payments should begin within the next three weeks. No further action will be required for the Taxpayers who filed their 2019 personal return. The 2018 personal return will be used for the individuals who have not filed a return to date. However, some taxpayers that do not typically file a return will need to submit a simple tax return to receive the payment.
Eligibility for the impact payment
Taxpayers with Adjusted Gross Income (AGI) up to $75,000 for single, up to $150,000 for married couples filing joint returns will receive the full payment. For the filers with income above the $75,000/$150,000 thresholds, the payment is reduced by $5 for each $100. The phase-out is $99,000/$198,000.
Head of households have a threshold of $112,500 with a phase-out at $146,500, and $500 per every qualifying child.
The eligible taxpayers who filed their returns in 2019 or 2018 will automatically receive the economic impact payment of up to $1,200 for individuals or $2,400 for married couples and up to $500 for each qualifying child.
Social security and railroad retirees will not need to file a return and are eligible to receive these payments.
How will the IRS send the payments?
According to the IRS, if you filed your return in 2019 or 2018 and provided a bank account, the payment will be directly deposited. If the bank account changed, a web portal will be developed for individuals to provide their banking information online as opposed to having a check mailed.
If I owe money to the IRS, will I still receive a payment?
According to the IRS, taxpayers who owe the IRS will still receive the stimulus payment. The only exception is if you owe child support.
How long are the payments available for?
According to the IRS, the economic tax payments will be available throughout the rest of 2020.
Please visit the IRS website here for further information on the economic benefit payments.