The IRS announced that they have started direct depositing the first wave of Economic Impact Payments (stimulus checks) to those who qualify. A treasury spokesperson said that up to 70 million people will receive their payments via direct deposit by Wednesday, April 15th.
The Economic Impact Payments provides a $1,200 refundable tax credit for individuals and $2,400 for joint taxpayers. Individuals cannot be a dependent of another taxpayer and must have a work eligible Social Security number with adjusted gross income up to:
- $75,000 for individuals
- $112,500 for head of household filers and
- $150,000 for married couples filing joint returns
Taxpayers will receive a reduced payment if their AGI is between:
- $75,000 and $99,000 if their filing status was single or married filing separately
- 112,500 and $136,500 for head of household
- $150,000 and $198,000 if their filing status was married filing jointly
Additionally, taxpayers with children will receive a flat $500 for each child. Individuals that will not receive a check if they can be claimed as a dependent on someone else’s return. Payments are based on the 2018 return unless the 2019 return has been filed.
No additional action is needed by taxpayers who have already filed their tax returns this year for 2019 or haven’t filed yet for 2019 but filed a 2018 federal tax return. The IRS will use the same direct deposit information and address from your filed tax returns. If returns were filed without direct deposit information, or if you’ve moved, taxpayers can use the ‘Get My Payment’ button on the IRS Economic Impact Payments page to enter their banking information or updated mailing address.
For taxpayers with no direct deposit information on file, the IRS will start mailing up to 5 million checks per week beginning on April 24th. The first paper checks will go to those taxpayers with the lowest AGI. For taxpayers that are just under the income threshold, it could be months before they receive their stimulus check. That is why the IRS is urging taxpayers to get their bank information on file.
For those who were not required to file a tax return for 2018/2019 due to low AGI, please visit the ‘Non-Filers: Enter Payment Info Here’ section on the IRS website for more information. This does NOT apply to Social Security and disability recipients. The IRS already has their info on file and they will receive their payments accordingly.
Please visit the Economic Impact Payment Information Center on the IRS website for more information.