The US government is preparing to send out direct payments to help individuals amid the coronavirus pandemic.
The first payments have started to go out already for those whom the Internal Revenue Service already has direct deposit information on file.
It’s unclear how long it will take to get the money to everyone else, some experts are projecting weeks or even months, unfortunately.
The IRS will use your 2019 tax return if you’ve already filed it, or your 2018 return to calculate the amount of your payment. The payments would not be subject to tax, and those who owe back taxes will still get the payouts.
Individuals are due up to $1,200 and couples will receive up to $2,400 — plus $500 per child. But payments start phasing out for individuals with adjusted gross incomes of more than $75,000. The amount will then be reduced by $5 for every additional $100 of adjusted gross income, and those making more than $99,000 will not receive anything. The income thresholds would be doubled for couples (So, if a couple makes $198,000+ will not receive anything).
The Internal Revenue Service posted a notice on its website earlier this week saying people who typically don’t file taxes would need to file a simple tax return to receive Stimulus Money. That would have included low-income taxpayers, senior citizens, Social Security recipients, some veterans and individuals with disabilities who are otherwise not required to file a tax return.
On Wednesday, amid sharp controversy, they reversed that decision.
The IRS will now use Social Security data to generate payments to Social Security recipients who did not file tax returns in 2018 or 2019.
Recipients will receive these payments as a direct deposit or by paper check, just as they would normally receive their benefits.
If you don’t usually file a tax return, submit your information here to get the Economic Impact Payment:
For daily updates, visit: https://www.irs.gov/newsroom/economic-impact-payments-what-you-need-to-know