Covid 19 :IRS-Economic impact payments
Updated: Apr 3
We all are together in these unprecedented times today where all the "known" have been questioned or just thrown out of the windows. There is a growing need more that ever to stand as a community to help each other to stay informed. Below is a small effort to keep my fellow tax payers up to date with the information that is constantly in flux.
IRS is going to start distributing economic impact payments in the next few weeks with no action required from most people. Tax filers can expect to receive a payment of approximately $1,200 to $2,400, plus $500 for each qualifying child depending on your tax filing status of Individual or Joint filing.
However, the rebate is reduced by $5 for each $100 of the amount by which the taxpayer's adjusted gross income exceeds the thresholds.
(1) $75,000 in the case of a single or married filing separately
(2) $112,500 in the case of a head of household, and
(3) $150,000 in the case of a joint return
Eligible taxpayers who filed tax returns for either 2019 or 2018 will automatically receive an economic impact payment rebates into their bank accounts.
For those who have not yet filed their return for 2019, the IRS will use information from their 2018 tax filing to calculate the payment.
The economic impact payment will be deposited directly into the same banking account reflected on the return filed.
Social Security beneficiaries who are not typically required to file tax returns will not need to file an abbreviated tax return to receive an Economic Impact Payment. Instead, payments will be automatically deposited into their bank accounts.
The IRS will use the information on the Form SSA-1099 and Form RRB-1099 to generate $1,200 Economic Impact 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
However, some people who typically do not file returns will need to submit a simple tax return to receive the stimulus payment.
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