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Economic Impact Payments - What You Need to Know
Everyone seems to have questions regarding the Economic Impact Payments they have been promised. We wanted to put your minds at ease, make it easy for you to find answers to your questions, and put all the information in one place for you.
Here’s what we found out:
Economic Impact Payments - No Action Needed by Most
The Treasury Department and the Internal Revenue Service announced that distribution of Economic Impact Payments will begin in the next two to three weeks and 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.
How Will the IRS Know Where to Send my Payment?
For the majority of people, there is no action needed on your part.
For people who have already filed their 2019 tax returns, the IRS will use the information on your return to calculate and send your payment. For those who have not yet filed their return for 2019, the IRS will use information from your 2018 return to calculate the payment. The Economic Impact Payment will be deposited directly into the bank account reflected on your return.
If the IRS does not have your direct deposit information, the Treasury plans to develop a web-based portal for individuals to provide their banking information to the IRS online, so that individuals can receive payments immediately as opposed to checks in the mail.
Social Security Recipients Will Automatically Receive Economic Impact Payments
The U.S. Department of the Treasury and the Internal Revenue Service have stated that Social Security beneficiaries who are not typically required to file tax returns will not need to file an abbreviated tax return to receive an Economic Impact Payment. Instead, payments will be automatically deposited into their bank accounts.
Even Social Security recipients who did not file tax returns in 2018 or 2019 will receive payments.
Recipients will receive these payments as a direct deposit or by paper check, just as they would normally receive their benefits.
Where Can I Get More Information?
The IRS will post all key information on IRS.gov/coronavirus as soon as it becomes available. They are asking that you check for updated information there, rather than calling the IRS because of the reduced staff in many offices.
We hope that this makes your day a little less stressful, and maybe even a bit easier. Remember Ripco family, we are going to get through this together.