04/02/2020
On March 25, Congress passed the Coronavirus Aid, Relief, and Economic Stimulus (CARES) Act, a $2 trillion stimulus deal to provide economic relief for Americans, businesses and the health care industry, in response to the coronavirus pandemic. As part of the bill, U.S. residents with a valid Social Security number are eligible for a $1,200 rebate ($2,400 for married couples) and an additional $500 per child under 17.
In IR-2020-61, the Treasury Department and the Internal Revenue Service announced yesterday that distribution of economic impact payments will begin in the next three weeks and will be distributed automatically, with no action required for most people. However, some seniors and others who typically do not file returns will need to submit a simple tax return to receive the stimulus payment.
The news release contained responses to the following common questions:
Who is eligible for the economic impact payment?
Tax filers with adjusted gross income up to $75,000 for individuals and up to $150,000 for married couples filing joint returns are eligible. For filers with income above those amounts, the payment amount is reduced by $5 for each $100 above the thresholds, and will phase-out at $99,000 for single filers and $198,000 for joint filers with no children.
How will the IRS know where to send my payment?
The IRS will deposit the payment directly into the bank account reflected on the taxpayer's 2019 or 2018 return.
The IRS does not have my direct deposit information. What can I do?
In the coming weeks, the Treasury Department plans to develop a web-based portal for individuals to provide their banking information to the IRS online, so that they can receive payments immediately, rather than receiving a check in the mail.
I am not typically required to file a tax return. Can I still receive my payment?
Yes. Just file a simple tax return to receive an economic impact payment. Certain groups like low-income taxpayers or senior citizens, who don't normally file, will not owe tax.
How can I file the tax return needed to receive my economic impact payment?
IRS.gov will soon provide information instructing people who don't normally file on how to file a 2019 tax return with simple, but necessary, information, such as filing status, number of dependents, and direct deposit bank account information.
I have not filed my tax return for 2018 or 2019. Can I still receive an economic impact payment?
Yes. If you have not yet filed a tax return for 2018 or 2019, file as soon as possible to receive an economic impact payment.
I need to file a tax return. How long are the economic impact payments available?
Economic impact payments will be available throughout the rest of 2020.
