Americans are beginning to see the first economic impact payments hit their bank accounts.
The IRS tweeted Saturday that it had begun depositing the funds into taxpayers’ bank accounts and would be working to get them out as fast as possible. The one-time payments were approved by Congress as part of an emergency relief package intended to combat the economic damage from the coronavirus pandemic.
Here is what you should expect:
WHO IS GETTING A CHECK?
Any adult earning up to $75,000 in adjusted gross income who has a valid Social Security number will receive a $1,200 payment.
The payment steadily declines for those who make more and phases out for those who earn more than $99,000. For married couples, both adults receive $1,200, with the phase-out starting at $150,000 of income and falling to zero for couples who earn $198,000.
Parents will also get payments of $500 for each eligible child; this is generally those 16 years old or younger.
For heads of household with one child, the benefit starts to decline at $112,500 and falls to zero at $136,500.
Even those who only receive Social Security or other government benefit programs can receive a check.
WHO DOESN’T GET ONE?
High-income filers are excluded, as is anyone without a valid Social Security number.
If someone can be claimed as a dependent on someone else’s return, such as an adult child or student, they will not get a payment.
People who are not a U.S. citizen, U.S. national and do not yet have a green card or have not met the IRS resident requirement know as “substantial presence test” aren’t eligible.
WHAT DO I HAVE TO DO?
For most people, nothing.
Checks will arrive via direct deposit if a taxpayer included the relevant information on their tax return filed this year or last.
The Treasury and IRS ultimately decided Social Security recipients and railroad retirees, who aren’t typically required to file taxes, would not need to file a simple tax return to get the payment.
Anyone else who isn’t typically required to file taxes and does not receive Social Security will still need to file an abbreviated return to get the payment. On Friday, the Treasury unveiled an online tool that allows these nonfilers to more quickly register to get their check.
If someone didn’t file a tax return for either the 2018 or 2019 tax year, the IRS is urging them to file as soon as they can.
And for people who filed taxes for those years but did not include direct deposit information, the IRS plans to have a “Get My Payment” app available later this week that will allow them to add their bank information so their payment can be deposited.
For everyone else, the government will mail a check.
WHEN WILL I GET THE PAYMENT?
Direct deposits began this weekend. The Treasury said that tens of millions will receive direct deposit payments by Wednesday.
