Answers - Coronavirus Economic Impact Payment

COVID-19 Economic Impact Payments for Individuals and Families

On March 30,2020, three days after the Coronavirus Aid Relief, and Economic Security Act (CARES Act) was signed into law, the Treasury Department and the Internal Revenue Service told Taxpayers they could expect a check (via auto deposit) in the next three weeks. As the Coronavirus continues to sweep through our country, economic hardships are compounding due to loss of employment and income reductions, leaving many American's scrambling to find out how they can receive a recovery rebate payment.

What do I need to do to receive my payment?

Most people do not have to take action to receive payment because the IRS will use your last filed tax return will be used to determine qualification, the amount of the payment, as well as bank account info. For those taking advantage of the extended July 15th filing deadline for IRS Form 1040, their 2018 tax return will be used to determine qualification.

Initial guidance for those who are otherwise not required to file a tax, for example, seniors, suggested a simple 2019 tax return would need to be submitted to receive the stimulus payment. To the relief of many, the IRS has attempted to resolve this issue by creating a portal for "Non-filers" allowing them to submit the necessary information to receive the payment.

Non-filers are eligible to use the IRS payment portal if they:

• Had gross income that did not exceed $12,200 ($24,400 for married couples) for 2019, or

• Were otherwise not required to file a federal income tax return for 2019

How much will I receive?

The maximum economic impact payment is $1,200 for individuals or $2,400 for married couples. Parents also receive $500 for each qualifying child.

Here's where your tax return comes in - Taxpayers will only receive the full payment IF their adjusted gross income does not exceed $75,000 for individuals or $150,000 for married filing joint. Income above these amounts will reduce the payment amount $5 for each $100 above the $75,000/$150,000 thresholds. Thus, single filers with income exceeding $99,000 and $198,000 for joint filers with no children are not eligible.

I filed my 2019 return but the IRS does not have my direct deposit info - what can I do?

The IRS is developing a payment confirmation portal that should be up and running by mid-April. Once available, taxpayers should be able to input or verify bank account information by following this IRS Link.

I need to file my tax return(s). How long are the economic impact payments available?

Delinquent tax filers for 2018 and 2019 can still take advantage of the credit once they file their 2020 tax return. The economic impact payment is actually a refundable tax credit available on the 2020 1040.

What if my tax situation has changed since 2019?

There are many people that will find themselves in situations where they do not qualify or qualify for less of a payment based on their 2019 tax return. For example, a taxpayer would not receive the $500 advanced payment for a child born in 2020. However, because the economic impact payment is an advancement of of a refundable credit on their 2020 tax return, the taxpayer would receive a $500 refundable credit when their 2020 1040 is filed.

This chart from the Tax Foundation illustrates qualification perimeters according to income and filing status.

Please call our office with any questions on how we can help you expedite your economic impact payment.