PHOENIX (3TV/CBS 5) -- Treasury Secretary Steven Mnuchin said that Americans could expect checks from the historic $2 trillion stimulus bill to be direct deposited in their accounts as early as April 26, 2020. There are quite a few questions about who qualifies for a stimulus payment and who doesn't. Below are the frequently asked questions.
Do I need to do anything to get the stimulus money?
The Treasury Department and the Internal Revenue Service said payments will be distributed automatically, with no action required for most people. However, some seniors and others who typically do not file returns will need to submit a simple tax return to receive the stimulus payment.
Who is eligible?
Under the stimulus, individuals will receive up to $1,200 and couples will receive up to $2,400 -- plus $500 per child under the age of 17. The payments start phasing out for individuals with adjusted gross incomes of more than $75,000. The amount is then reduced by $5 for every additional $100 of adjusted gross income, and singles making more than $99,000 will not receive anything. Couples making more than $198,000 will also not receive anything.
The IRS will go by your adjusted gross income on Line 8b of your 2019 1040 federal tax return.
Calculate your stimulus payment
This is a estimation based on figures from the CARES Act and not a promise of actual refund. Your inputs will not be stored.
How will the IRS know where to send the payment?
The vast majority of people do not need to take any action. The IRS will calculate and automatically send the payment to those eligible.
For people who have already filed their 2019 tax returns, the IRS will use this information to calculate the payment amount. 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 payment will be deposited directly into the same banking account reflected on the return filed.
The IRS does not have my direct deposit information. What can I do?
In the coming weeks, the IRS plans to develop a web-based portal for individuals to provide their banking information online so they can receive payments immediately as opposed to waiting for the check to be mailed.
What if my direct deposit bank information has changed or I want to add a bank account for the first time?
The IRS is building a portal on its website where you can update your information. The portal is not yet available, but keep checking this website: IRS.gov/coronavirus.
I am not typically required to file a tax return. Can I still receive my payment?
Reversing an earlier position, the government said this week that Social Security recipients who are not required to file a tax return will not need to file a very simplified tax return to receive their government stimulus check, according to the Associated Press. The Treasury Department said that the IRS will use the information on the Form SSA-1099 and Form RRB-1099 to generate the checks to Social Security recipients who did not file tax returns in 2018 or 2019.
How can I file the tax return needed to receive my payment?
IRS.gov/coronavirus will soon provide information instructing people in these groups on how to file a 2019 tax return with simple, but necessary, information including their filing status, number of dependents and direct deposit bank account information.
I have not filed my tax return for 2018 or 2019. Can I still receive an 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 a payment. Taxpayers should include direct deposit banking information on the return.
How long are the stimulus payments available?
For those concerned about visiting a tax professional or local community organization in person to get help with a tax return, these payments will be available throughout the rest of 2020.
Will most people who are receiving Social Security retirement and disability payments each month receive a stimulus check?
Yes, if they filed a tax return this year or last year, or received a Form SSA-1099. Otherwise, they need to file a simple tax return.
Will eligible unemployed people get these stimulus payments? Veterans?
Do I have to pay income taxes on the amount of my stimulus payment?
Who is not eligible?
- Children who are 17 or 18 years old
- Many college students between 19 to 23 years old
- Adults who are claimed as a dependent by someone else
- People who have not filed their 2018 or 2019 taxes (As mentioned above, they need to file a simple tax return)
- High-income households