The Treasury Department and the Internal Revenue Service (IRS) announced yesterday, March 30th, that they will begin distributing coronavrus economic impact payments in the next three weeks, with no action needed by most taxpayers. Below is a summary of what you need to know.
Individual tax filers with a 2019 or 2018 adjusted gross income up to $75,000.00 will automatically receive $1,200.00.
- Payment will be reduced by $5.00 for each $100.00 above the $75,000.00 threshold; however, individual filers with income exceeding $99,000.00 are not eligible.
- If a taxpayer did not file a 2019 return, the IRS will use his/her 2018 return.
Married couples filing jointly with a 2019 or 2018 adjusted gross income up to $150,000.00 will automatically receive $2,400.00, plus $500.00 for each qualifying child.
- Payment will be reduced by $5.00 for each $100.00 above the $150,000.00 threshold; however, married couples with income exceeding $198,000.00 with no children are not eligible.
- If the taxpayers did not file their 2019 return, the IRS will use their 2018 return.
People who typically are not required to file a tax return must file a simple return to receive payment; i.e. low-income taxpayers, senior citizens, social security recipients, veterans, individuals with disabilities, etc.
The IRS will calculate and automatically send the payment amounts.
The payments will be deposited directly into the bank account reflected on the last tax return filed.
If the IRS does not have your direct deposit information, you will be able to enter your banking information in the web-based portal that the Treasury department plans to design in the coming weeks.
The economic impact payments will be available throughout the rest of 2020.