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All you need to know about the Economic Impact Payments – “Stimulus Check”

Apr 17, 2020 | IRS - Internal Revenue Service, US Tax Return 1040 / 1040NR | 0 comments

Who Is Eligible and How Much Will You Get?

You are eligible if you are US citizen and US residents Aliens with a valid SSN, could not be claimed as a dependent of another taxpayer and had Adjusted Gross Income (AGI) under certain limits. It does not matter where you live or your filing status.

All US Citizens and US Residents Aliens will automatically receive up to $1,200 and married couples $2,400, plus an additional $500 for each child. The size of a check would diminish gradually for those whose income is above $75,000, while individuals earning more than $99,000 and couples earning more than $198,000 will not be getting any checks. The checks will be based on a household or individual’s 2018 tax return unless they filed their 2019 tax return, in which case it will be based of their 2019 return.

The rebate check for individuals would shrink by $5 for every $100 earned over $75,000. For couples who filed jointly, the reduction would start once they earn more than $150,000; for heads of household, at $112,500. Individuals who earned more than $99,000 and couples who earned more than $198,000 jointly would not receive checks. The check you receive is just an advanced payment of a tax credit for the 2020 tax year. It won’t be included in your taxable income.

If you are receiving Social Security Benefits but did not file taxes in 2018 or 2019, you would be eligible to receive a stimulus check without a tax return based on data available to the IRS from your annual Social Security benefits statement. The government would send you a check using the information from your Form SSA-1099 Social Security Benefit Statement. You would not have to file a 2019 tax return to get a stimulus check.

What can you do if you are a Non-Filer?

All those who had gross income that did not exceed $12,200 ($24,400 for married couples) for 2019, and were not otherwise required to file a federal income tax return for 2019, and didn’t plan to, can benefit from the Economic Impact Payment by providing the necessary information to the IRS easily and quickly for free through Non-Filers: Enter Payment Info. The IRS will use this information to determine your eligibility and payment amount and send you an Economic Impact Payment. After providing this information you will not need to take any additional action.

Update your bank account or mailing address to receive the Direct Deposit or the “Stimulus Check”

The IRS is committed to helping you get your Economic Impact Payment as soon as possible. The payments are automatic for most taxpayers and the IRS have started with the Direct Deposit last April 14th. No further action is needed by taxpayers who filed tax returns in 2018 and 2019 and most seniors and retirees.

If you need to check your payment status, or confirm your payment type: direct deposit or check or enter your bank account information for direct deposit if the IRS don’t have your direct deposit information and they have not sent your payment yet, you can always use the  Get My Payment application from the IRS website.

If we do not have your direct deposit information from your 2018 or 2019 Return, use the Get My Payment application to let the IRS know where to send your direct deposit.

For 2019 Filers, the IRS will send your payment using the information you provided with your 2019 tax return. You will not be able to change it. If you are a 2018 Filer, and you need to change your account information or mailing address, file your 2019 taxes electronically as soon as possible. That is the only way to let the IRS know your new information.

If you need any further information, please do not hesitate to contact us at Info@ustaxconsultants.es

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