Pamela Kweller RSSA Staff
The CARES Act has been signed and a significant provision of the bill is the distribution of economic impact payments. As a result, Americans have questions and are looking for answers. We have addressed the most common questions and over the next few weeks, as we gain more clarity, we will have more answers.
Who is eligible to receive a check?
Individual tax filers with an Adjusted Gross Income (AGI) up to $75,000 and married/joint tax filers with an AGI up to $150,000 are eligible for a direct payment.
How much money will I receive?
Individual tax filers will receive up to $1,200 and joint tax filers will receive up to $2,400. If you have earned more than the AGI limit, your payment will be reduced by $5 for each $100 above the AGI threshold ($75,000/$150,000). In other words, individual tax filers with an AGI above $99,000 and joint tax filers with an AGI above $198,000 are no longer eligible to receive a stimulus check.
Parents will also receive an additional $500 for each qualifying child. The child must be under 17 years of age. College students are not eligible if they are claimed as dependents by their parents.
When and how will I be paid?
According to the Treasury Department and the Internal Revenue Service (IRS), the distribution of these payments will begin in the next three weeks. However, the checks will be available through the end of the year. This gives you time to meet certain qualifications such as filing a tax return.
The checks will be distributed automatically via direct deposit. We are told, in the near future, there will be an online portal via the IRS website to provide that information.
Do I need to file a tax return?
Yes. In order to qualify for a stimulus check, you must file a 2018 or 2019 tax return. It is advised to include your direct deposit information on your tax return.
What about Social Security recipients?
On April 1, 2020 the U.S. Department of Treasury declared that Social Security recipients who do not typically file tax returns will not need to file any type of tax return in order to receive a stimulus check. Rather, the IRS will use the information from an individual’s SSA-1099 and RRB-1099. Social Security recipients will receive their Economic Impact Payment via direct deposit or by paper check. Click for more Social Security Recipient Information