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A guide to COVID-19 economic stimulus relief
Source:
consumerfinance.gov
- Apr 16, 2020
This blog was originally posted on April 10, 2020 and was updated on April 15, 2020 to reflect new information.
Americans are increasingly feeling the impact of the coronavirus, both on their everyday lives and their financial well-being. As a result of the recently signed CARES Act
, the majority of Americans will start to see some financial relief in April through economic impact payments being issued by the Internal Revenue Service.
We’ve worked to break down the most common questions about the economic impact payments, including how much you’re eligible to receive and when you can expect to receive it:
When can I expect to receive my economic impact payment?
Do I qualify and how much will I receive?
What do I need to file in order to receive an economic impact payment?
How will the IRS send my payment?
I’ve moved since I’ve filed my taxes. How can I update my address?
Can I provide the IRS with my bank account information for direct deposit?
If I still need to file my 2018 or 2019 taxes, can I still receive the economic impact payment?
I’m not typically required to file taxes. Can I still receive the economic impact payment?
I don't have a Social Security number. Can I still get an economic impact payment?
Can the government reduce or garnish my economic impact payment?
I received a message from the IRS asking for my personal information. Is this a scam?
When can I expect to receive my payment?
The IRS will begin rolling out economic impact payments in April 2020. For most people, you won’t have to do anything – the payment will be directly deposited into your bank account or sent to you by check. Be aware, however, that if it’s sent by check, it might take a little longer.
Do I qualify and how much will I receive?
You likely qualify for an economic impact payment if:
your filing status is single or married but filing separately, and your adjusted gross income is less than $99,000;
your filing status is head of a household, and your adjusted gross income is less than $136,500;
your filing status is married and you file jointly, and your combined adjusted gross income is less than $198,000;
your adjusted gross income is above $75,000 as an individual or $150,000 as a joint filer, the payment amount is reduced by $5 for each $100; or
you don’t typically file taxes and receive Social Security benefits from the Social Security Administration or Social Security Equivalent Benefits (SSEB) from the U.S. Railroad Retirement Board.
Taxpayers
The majority of Americans will receive an economic impact payment that’s based on their income and the filing status on their 2019 tax return. If you haven’t filed your 2019 taxes, your 2018 return will be used to calculate the amount you’ll receive.
Single or married filing separately
If your adjusted gross income is below $75,000, you’ll receive the full $1,200. You will also receive $500 for each child under the age of 17 you claim on your taxes.
If your adjusted gross income is above $75,000, you’ll receive an amount that will be reduced by $5 for every $100 in adjusted gross income above $75,000.
If your adjusted gross income is more than $99,000 and you don’t claim any children under the age of 17, you won’t receive an economic impact payment.
Head of household
If your adjusted gross income is below $112,500, you’ll receive the full $1,200. You will also receive $500 for each child under the age of 17 you claim on your taxes.
If your adjusted gross income is between $112,500 and $136,500, you’ll receive an amount that will be reduced by $5 for every $100 in adjusted gross income above $112,500.
If your adjusted gross income is more than $136,500 and you don’t claim any children under the age of 17, you won’t receive an economic impact payment.
Married filing jointly
If your adjusted gross income is less than $150,000, you’ll receive the full $2,400. You will also receive $500 for each child under the age of 17 you claim on your taxes.
If your adjusted gross income is above $150,000, you’ll receive an amount that will be reduced $5 for every $100 in adjusted gross income above $150,000
If your adjusted gross income is more than $198,000 and you don’t claim any children under the age of 17, you won’t receive an economic impact payment.
There are a few additional cases in which you may not receive an economic payment, including if someone claims you as a dependent on their taxes, you have a non-resident alien status, or you’re filing on behalf of estates or trusts.
What do I need to file in order to receive an economic impact payment?
If you don’t typically file taxes because you’re not required to based on your income level, the IRS launched a web portal where Americans who did not file a tax return in 2018 or 2019 can submit basic personal information to the IRS so that they can receive payments.
If you are required to file a tax return, depending on your situation there may be a number of free or low-cost options for filing your return. If you need help filing it’s important to choose a reputable tax preparer that will file an accurate return. Any mistakes could result in additional costs and complications in the future.
You can generally get free tax preparation assistance by IRS-certified volunteers at a Volunteer Income Tax Assistance (VITA)
or a Tax Counseling for the Elderly (TCE) location if:
Your income is $56,000 or less
You are 60 years old or older
You have a disability or speak limited English
Also, if your 2019 adjusted gross income was less than $69,000, you may be able to find one or more online tools to file your taxes for free
. Review each company's offer to make sure you qualify for a free federal return. Some companies offer free state tax returns, but others may charge a fee.
Social Security beneficiaries
If you don’t file taxes but receive Social Security or SSEB benefits
If you don’t typically file taxes because you receive Social Security, Social Security Disability Insurance (SSDI) or Railroad Retirement Benefits and have a limited income, you’re automatically qualified – based on either your SSA-1099 or RRB-1099 form – to receive the full economic impact payment of $1,200 per beneficiary. You’re also automatically set up to receive your money in the same way you receive your benefits.
Also, if you have dependent children under the age of 17, you’ll qualify to receive an additional $500 per child, but the IRS will need you to complete a form
to provide information on the number of qualifying children so they can send you an additional economic impact payment.
If you do file taxes and receive Social Security (or SSEB) benefits
If you receive Social Security (or SSEB) and do file your taxes because you receive additional income through a pension or another source, you’ll receive your economic impact payment based on your latest tax return and the income categories above. If you haven’t filed a 2019 tax return, it will be based on your 2018 tax return.
How will the IRS send my payment?
Your economic impact payment will either be directly deposited into your bank account or a check will be mailed to you. If you file your taxes, you can check the status of your economic impact payment using the IRS “Get My Payment” tool
.
If you’re a Social Security (or SSEB) beneficiary who doesn’t need to file taxes, you’ll receive your economic impact payment the same way you receive your benefits, either by direct deposit or by check.
No matter how you receive your payment, the IRS will send you a letter in the mail to the most current address they have on file about 15 days after they send your payment to let you know what to do if you have any issues, including if you haven’t received the payment.
Can I provide the IRS with my account information for direct deposit?
Yes, the IRS has a separate online application, “Get My Payment,”
which allows you, if you filed your tax return in 2018 or 2019 but did not provide your banking information on your return, to submit direct deposit information so that you can receive payments immediately, as opposed to checks in the mail. “Get My Payment” will also allow you to track the status of your payment.
If you would like to receive payment on your own prepaid card, you can use the “Get My Payment” site to enter your card’s direct deposit routing and account number. Check your account online or call the card provider to find out if your prepaid account is eligible to receive direct deposit, which is the fastest way to receive the stimulus payment.
I’ve moved since I filed my taxes. How can I update my address?
If you provided your bank account information when you filed your taxes, the IRS will directly deposit your money into this account. They won’t need your updated address.
However, if you’re not set up with direct deposit and have switched addresses since your most recent filing, you can update your address on the IRS’s website
.
If I still need to file my 2018 and 2019 taxes, can I still receive the economic impact payment?
Yes. The IRS urges anyone with a tax filing obligation who has not yet filed a tax return for 2018 or 2019 to file as soon as they can to receive an economic impact payment. Taxpayers should include direct deposit banking information on the return.
Keep in mind that the IRS has extended the deadline for filing your 2019 taxes until July 15, 2020, and you’ll have until the end of 2020 to claim your money.
For those concerned about visiting a tax professional or local community organization in person to get help with a tax return, these economic impact payments will be available throughout the rest of 2020.
I’m not typically required to file taxes. Can I still receive the economic impact payment?
Yes, but you will need to visit IRS.gov and then click on “Non-Filers: Enter Payment Info Here.
” If you didn’t file a tax return in 2018 or 2019, this web portal allows you to submit basic personal information to the IRS so that you can receive payments. To receive your payment quickly, enter your account information so that your payment will be directly deposited in your bank account or on your prepaid card.
The tool will request the following basic information to check your eligibility, calculate and send the economic impact payments:
Full names and Social Security numbers, including for spouse and dependents
Mailing address
Bank account type, account and routing numbers
If you qualified automatically because you receive Social Security (or SSEB) benefits but you also have dependent children under the age of 17, you will need to provide the IRS with information about your dependents directly using their non-filers portal
so you can receive additional economic impact payment.
I don’t have a Social Security number. Can I still get an economic impact payment?
In almost all cases, a person is only eligible to receive an economic impact payment if they have a Social Security number (SSN).
One exception to this is if you’re a member of the military and file a married tax return. Your spouse isn’t required to have a SSN for you to get the stimulus payment.
Another exception, in the case of a child under age 17, is if the child is adopted and has an “adoption taxpayer identification number” (ATIN) they can be claimed for the purpose or receiving the $500 per child payment.
Can the government reduce or garnish my economic impact payment?
No. Your economic impact payment will not be subject to most types of federal offset or federal garnishment as a result of defaulted student loans or tax debt. However, the payments are still subject to garnishment if you’re behind on child support.
The payments may also still be subject to State/local government garnishment and also to court-ordered garnishments.
I received a message from the IRS asking for my personal information. Is this a scam?
Yes, this is a scam. With the rollout of economic impact payments, there’s an increased risk of scams. It’s important to stay vigilant and aware of unsolicited communications asking for your personal or private information – through mail, email, phone call, text, social media or websites – that:
Ask you to verify your SSN, bank account, or credit card information
Suggest that you can get a faster payment if they fill out information on your behalf or if you sign over your check to them
Send you a bogus check, perhaps in an odd amount, and then ask you to call a number or verify information online in order to cash that check
Be aware that scammers are also able to replicate a government agency’s name and phone number on caller ID. It’s important to remember that the Internal Revenue Service will never ask you for your personal information or threaten your benefits by phone call, email, text or social media.
If you receive an unsolicited email, text or social media attempt that appears to be from the IRS or an organization associated with the IRS, like the Electronic Federal Tax Payment System, notify the IRS at phishing@irs.gov. You can also learn more about coronavirus-related scams.
For more information the IRS website for stimulus payments is here
.
Find more information regarding COVID-19 from CFPB
We’re working to continuously update information for consumers during this rapidly evolving situation.
We will publish all COVID-19-related information and blogs to our resource page. Information should be considered accurate as of the blog publish date.
See our COVID-19 resource page
click source to access the page and links
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