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Economic Impact Payments Update and FAQ

(4/13/2020)

The Internal Revenue Service deposited the first wave of economic impact payments (stimulus payments) into taxpayers’ bank accounts on Saturday, April 11, 2020. Deposits will continue in the days ahead, starting with those who have filed federal tax returns for 2018 or 2019 and authorized direct deposit. It is estimated that direct deposits will occur over a three-week time period. The IRS expects to start issuing paper checks the week of May 4th at the rate of 5 million per week.

 

Q: If I haven’t filed my tax return for 2018 or 2019, what do I need to do?

A: It depends. Let’s break it down...

Scenario 1: I’m not required to file because I only collect Social Security retirement, disability (SSD) or survivor benefits or Railroad Retirement.

You need take no action. The IRS will use the information on Form SSA-1099 or Form RRB-1099 to calculate and generate your economic impact payment. You will receive your stimulus payment as a direct deposit or by paper check, depending on how you normally receive your benefits.

Scenario 2: I’m was not required to file for 2018 because my gross income was under $12,000 ($24,000 for married individuals) in 2018 and am not required to file for 2019 because my gross income was under $12,200 ($24,400 for married couples).

Visit http://www.irs.gov. Menu item “Get Info on Economic Impact Payments”. Follow instructions at “Non-Filers: Enter Payment Info Here”.

Scenario 3: I’m not required to file for another reason not listed above.

Follow the steps outlined in scenario 2 above.

Scenario 4: I am required to file but have not yet filed 2018 or 2019.

The IRS urges you to do so quickly. According to the legislation, the IRS has until the end of 2020 to transfer the payments.

 

Q: The IRS doesn’t have my banking information because I have not authorized direct deposit for refunds or direct debit for balances due.

A: Visit http://www.irs.gov. Select menu item “Get Info on Economic Impact Payments”. Follow instructions at “Filers: Get Your Payment.

Note: This link is not active yet. The website says coming mid-April and according to the latest update it is anticipated to be ready to go by the end of this week.

 

Q: I have more questions. How can I find answers?

A: Visit http://www.irs.gov. Select menu item “Get Coronavirus Tax Relief." Check back for frequent updates.Or contact our office. We are here to help.

Topics: taxes, Accounting, BTR, Coronavirus, COVID-19, pandemic, CARES Act, Coronavirus Aid, Relief, and Economic Security Act, Stimulus Payments, Economic Relief