Legislation signed by the President provides for economic impact payments. As of March 31, 2020, IRS and The Treasury Department announced the payments will begin in the next three weeks. Here is what you need to know.
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 receive the full payment. Filers above these amounts will receive reduced payments. Single filers with income exceeding $99,000 and for married joint filers with not children with income exceeding $198,000 are not eligible.
What is the maximum payment? The payment is $1,200 for single individuals and $2,400 for married couples. Parents receive an additional $500 for each qualifying child.
How will IRS know my adjusted gross income? IRS will use either the 2018 or 2019 whichever return was filed most recently.
What if I’m not required to file a return? If you are receiving Social Security payments, the IRS will use your Social Security information to determine if a payment is due. Other taxpayers will need to file a tax return even if you don’t owe a tax. Soon IRS will provide information instructing you on how to file a 2019 tax return with simple information including your filing status, number of dependents and direct deposit bank account information.
Do I need to file anything to request the payment? No, IRS will use the 2019 tax return or the 2018 tax return if 2019 has not been filed.
How will I get the payment? IRS will directly deposit the refund into the same bank account used for direct deposit reflected on the most recently filed tax return or the bank account used to deposit Social Security payments.
What if IRS doesn’t have my bank account information? The IRS is developing a web-based portal for individuals to provide their banking information to the IRS online so individuals can receive payments immediately rather than waiting for checks in the mail.
What if I haven’t filed yet? The payments will be available throughout 2020.
Questions? Please contact us at 401-831-0200.