The distribution of economic impact payments will begin in the next three weeks (weeks of April 6th, 13th and 20th of 2020). According to the IRS, the payments will be distributed automatically, with no action required for most people. The IRS will calculate and automatically send the economic impact payment to those eligible. 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. Rebates are payable whether or not tax is owed. The economic impact payments will be available throughout the rest of 2020.
How it will work
- 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 will calculate and automatically send the economic impact payment to those eligible. For people who have already filed their 2019 tax returns, the IRS will use this information to calculate the payment amount. For those who have not yet filed their return for 2019, the IRS will use information from their 2018 tax filing to calculate the payment.
- The economic impact payment will be deposited directly into the same banking account reflected on the return filed.
- For those Taxpayers that the IRS does not have the Taxpayer’s direct deposit information, in the coming weeks, Treasury plans 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.
Not yet filed a tax return for 2018 or 2019?
IRS is urging anyone with a tax filing obligation who has not yet filed a tax return for 2018 or 2019 to file as soon as they can to receive an economic impact payment. Taxpayers should include direct deposit banking information on the return.
If the IRS does not have direct deposit information
In the coming weeks, Treasury plans 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.
Consult your Tax Professional if you need assistance completing a tax return
If you have a tax filing obligation and have not yet filed a tax return for 2018 or 2019, you ought to file as soon as possible in order to receive an economic impact payment.
