The IRS has announced that distribution of economic impact payments would begin in the next three weeks. However, some seniors and others who typically do not file returns would be required to submit a simple tax return to receive the stimulus payment. Further, the IRS has addressed the most common queries related to Economic impact payments:
- Eligibility: Tax filers with adjusted gross income up to $75,000 for individuals and up to $150,000 for married couples filing joint returns would receive the full payment. Further, 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 would automatically receive an economic impact payment of up to $1,200 for individuals or $2,400 for married couples. Moreover, parents would also receive $500 for each qualifying child.
- Calculation and depositing the payment: The IRS would calculate and automatically send the economic impact payment to those eligible. The economic impact payment would be deposited directly into the same banking account reflected on the 2019 tax returns filed by taxpayers.
- Direct deposit information: A web-based portal for individuals is being developed to provide the taxpayers’ banking information to the IRS online, so that they can receive payments immediately as opposed to checks in the mail.
- Taxpayers who typically do not file a tax return: Low-income taxpayers, senior citizens, social security recipients, some veterans and individuals with disabilities need to file a simple tax return to receive an economic impact payment and would not owe tax.
- Filing the 2019 income tax return: IRS.gov/coronavirus would soon provide information instructing taxpayers on how to file a 2019 tax return to receive economic impact payments.
- Taxpayers who have not filed their tax return for 2018 or 2019: The IRS has urged taxpayers with an outstanding tax filing obligation for 2018 or 2019 to file sooner to receive an economic impact payment. Further, taxpayers should include direct deposit banking information on their tax returns.
- Availability of economic impact payments available: Economic impact payments would be available throughout the rest of 2020.
Even though the IRS has a reduced staff in many of its offices, the Service remains committed to helping eligible individuals receive their payments expeditiously. Finally, the IRS has urged taxpayers to visit IRS.gov/coronavirus for updated information related to economic impact payments rather than calling IRS assistors who are helping process 2019 returns.