You’ve probably heard that IRS will be making millions of\n”economic impact payments” (also called ”recovery rebates”) in the near\nfuture to help people stay afloat during this time of economic uncertainty\nrelated to the COVID-19 crisis. These payments are in addition to the $1,200\npayments ($2,400 for married couples) issued earlier in 2020. Here’s what you\nneed to know about these additional payments.<\/p>\n\n\n\n
Amount of payment. IRS has begun making payments of up to $600\nto eligible taxpayers or up to $1,200 to married couples filing joint returns.\nParents will get an additional $600 for each dependent child under age 17.\nThus, a married couple with two children under 17 will get a $2,400 payment.<\/p>\n\n\n\n
Who is eligible. U.S. citizens and residents are eligible for a\nfull payment if their adjusted gross income (AGI) is under $75,000 for singles\nor marrieds filing separately, $112,500 for heads of household, and $150,000\nfor married couples filing jointly and surviving spouses. The recipient must\nnot be the dependent of another taxpayer and must have a social security number\nthat authorizes employment in the U.S.<\/p>\n\n\n\n
Phaseout based on income. For individuals whose AGI exceeds the\nabove thresholds, the payment amount is phased out at the rate of $5 for each\n$100 of income. Thus, the payment is completely phased out for single filers\nwith AGI over $87,000 and for joint filers with no children with AGI over\n$174,000. For a married couple with two children, the payment will be\ncompletely phased out if their AGI exceeds $198,000.<\/p>\n\n\n\n
Payments are nontaxable. The economic impact payment that you\nreceive won’t be included in your income for tax purposes. It won’t cause you\nto owe tax or decrease your refund for 2020.<\/p>\n\n\n\n
How to get a payment. The vast majority of people won’t have to\ndo anything to get an economic impact payment. IRS will calculate and send the\npayment automatically to those who are eligible.<\/p>\n\n\n\n
If you’ve filed your 2019 tax return, IRS will use the AGI and\ndependents from that return to calculate the payment amount. The credit won’t\nbe allowed if the return doesn’t include a valid identification number (typically,\na social security number) for each individual for whom a credit is sought.\nThus, for example, a joint return must include valid identification numbers for\nboth spouses to get the full $1200 credit. A $600 credit is allowed if only one\nspouse provides a valid identification number, and no credit is allowed if\nneither spouse does so.<\/p>\n\n\n\n
IRS will deposit the payment directly into the bank account\nreflected on the return. IRS has developed a web-based tool called Get My\nPayment, www.irs.gov\/coronavirus\/get-my-payment, for individuals to provide\nbanking information to IRS, so that payments can be received by direct deposit\nrather than by check sent in the mail. The tool includes the date the payment\nis scheduled to be issued to the individual.<\/p>\n\n\n\n
If you have not yet filed for 2019. The due date for 2019\nindividual income tax returns was July 15, 2020, or October 15 if an automatic\nextension of time was requested on Form 4868. Individuals who are required to\nfile a return for 2019 and haven’t done so should file the return as soon as\npossible. Doing so will help give IRS time to process and make all resulting\neconomic impact payments before January 15, 2021 (the deadline for processing\npayments).<\/p>\n\n\n\n
If you aren’t required to file. If you receive social security,\nsupplemental security income, social security disability income, railroad\nretirement, or veterans’ compensation and pension benefits, and you aren’t\nrequired to file a tax return, you don’t have to file to receive a payment. IRS\nwill generate an automatic payment using information from the Social Security\nAdministration and the Department of Veterans Affairs. The payment will be made\nby direct deposit or paper check, in the same manner as the recipient’s regular\nbenefits.<\/p>\n\n\n\n
If you aren’t required to file a tax return and you don’t\nreceive any of the above payments, you can register to receive an economic\nimpact payment by providing information on IRS’s web-based Non-Filers: Enter\nPayment Info Here tool, www.irs.gov\/coronavirus\/non-filers-enter-payment-info.<\/p>\n\n\n\n
Non-filers with dependent children; $600 payment. Non-filers who\nhave a dependent child under age 17 must register their dependents on the\nNon-Filers: Enter Payment Info Here tool to receive the additional payment of\n$600 per child. Non-filers who receive the economic impact payment before\nregistering a dependent child can still get the additional $600 payment by\nfiling a 2020 income tax return on which the dependent is listed.<\/p>\n\n\n\n
Please let me know if you have any questions about the economic\nimpact payments or any other COVID-19 issues.<\/p>\n\n\n\n
\u00a9 2021 Thomson Reuters\/Tax & Accounting. All Rights\nReserved.<\/p>\n\n\n\n
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You’ve probably heard that IRS will be making millions of ”economic impact payments” (also called ”recovery rebates”) in the near future to help people stay afloat during this time of economic uncertainty related to the COVID-19 crisis. These payments are in addition to the $1,200 payments ($2,400 for married couples) issued earlier in 2020. Here’s…<\/p>\n","protected":false},"author":7,"featured_media":1498,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[12,7,35,18,19,1],"tags":[],"yoast_head":"\n