Economic Impact Payment – What You Need To Know

Make sure you are up to date on your taxes to receive stimulus checks quickly and securely. Check out our Accounts information page for information on how to open a bank account.

What You Need To Know

The IRS will use 2019 taxpayer forms to determine how much a person’s check should be and where it should be sent. If 2019 taxes have yet to be filed, the IRS would use information from taxpayers’ 2018 forms. If you have not yet filed taxes for 2018 or 2019, you can still do so and should make it a priority. It’s not necessary to download special software or use a tax preparer. The IRS has two paths for free filing options, one for those making under $69,000 and another for those making above $69,000. Both can be found on IRS.gov.

Individuals making up to $75,000 will receive $1,200, with an additional $500 per child. The payments would progressively decrease for individuals making more than $75,000, with an income cap of $99,000. People receiving nontaxable income and those receiving Social Security benefits will also get the payment.

People who were planning on receiving paper checks and have moved since they filed their last returns should submit a change of address form, which normally takes four to six weeks to process. Taxpayers can receive funds faster if signed up for direct deposit with the IRS. To register for direct deposit, people should indicate it as the refund method on their tax forms. To change a bank account or a routing number for the deposit, call the IRS customer service line at 800-829-1040.

Economic Impact Payment Income FAQ’s

Is this rebate counted as income for 2020? No, the rebate is treated as a fully refundable credit such as the Earned Income Tax Credit and cannot be considered as income.

Is there a qualified income requirement? No, there is no income requirement. So long as the other qualifications are met, taxpayers with $0 in income will still receive their rebate check.

What if I don’t get the stimulus payment or did not get the full benefit of the credit? Due to the unique structure of this rebate as an advance on a tax credit that can be claimed on the 2020 tax return, you’ll be able to claim any differences on the credit on the 2020 return.

Are college students eligible? If the student made under the threshold amount; has a Social Security Number; and cannot be claimed as a dependent under someone else’s tax return, then they are eligible for the rebate.

Will this rebate be counted against any outstanding back taxes? No, this rebate supersedes nearly all past debts so if you owe back taxes, you’ll still receive your full rebate amount.

When will I get my check? According to Treasury Secretary Steve Mnuchin, the first stimulus payments will be distributed within three weeks. Depending on the complexity of the disbursements, the payments may take longer than the three-week timeline.

Sources:
https://www.nbcnews.com/business/consumer/stimulus-checks-are-coming-here-s-how-make-sure-you-n1169576

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