IRS Announces More Details on the Economic Impact Payments
The Internal Revenue Service today announced 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.
These payments will based on the 2019 tax return if filed, and if not on the 2018 return. This means that some seniors and others who typically do not file returns will need to submit a simple tax return to receive the stimulus payment.
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.
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. Parents also receive $500 for each qualifying child.
The IRS stated they will send the payments based on the information on the 2019 tax return if filed, and if not on the 2018 tax return. The economic impact payment will be deposited directly into the same banking account reflected on the return filed. If the IRS does not have a taxpayer’s direct deposit information, it is planning 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.
For those who have not filed a tax return for 2018 or 2019 you can still receive an economic impact payment by filing a tax return as soon you as they can to receive an economic impact payment. Taxpayers should include direct deposit banking information on the return.
If you want to read the IRS announcement itself you can find it here: https://www.irs.gov/newsroom/economic-impact-payments-what-you-need-to-know