Update on Stimulus Payment
The IRS announced last night that stimulus payment distribution will begin in the next three weeks. The checks will be distributed automatically.
Those who are not generally required to file returns, such as social security recipients and low-income taxpayers, will need to file a return in order to receive the payment. The IRS will soon be providing instructions for these individuals as to how to file a 2019 return. The return must contain the filing status, number of dependents and bank information for direct deposit. These instructions will be posted on IRS.gov/coronavirus.
WHO IS ELIGIBLE TO RECEIVE A STIMULUS PAYMENT?
Individuals whose adjusted gross income is up to $75,000, and up to $150,000 for joint filers, receive the full amount ($1,200/$2,400). There is an additional $500 for each qualifying child. The payout is reduced by $5 for every $100 above these figures. The 2019 return will be used to make the determination. If the 2019 return has not been filed, the 2018 return will be used.
Taxpayers who have not filed a 2018 or 2019 return will need to file the 2019 return as soon as possible in order to receive the stimulus payment. The direct deposit information should be included on the return.
The stimulus payment will be available until December 31, 2020.
WHERE WILL THE IRS SEND THE PAYMENT?
The payment will be automatically deposited into the same bank account which was used on your 2019/2018 return.
If the IRS does not have the taxpayer’s direct deposit information, the IRS plans to develop a web-based portal in the coming weeks for the taxpayer to provide his/her bank information. If the taxpayer does not register the banking information, the IRS will mail the taxpayer a check.