03/31/2020

IRS, Treasury Release Additional Details About COVID-19 Stimulus Package

Most Americans won't have to do anything to collect funds

On March 30, 2020, the Treasury Department and the Internal Revenue Service (IRS) announced that distribution of economic impact payments will begin in the next three weeks and will be distributed automatically.

According to the government, most people will have to take no action to receive the funds. However, some seniors and others who typically do not file returns will need to submit a simple tax return to receive the stimulus payment. The IRS will calculate and automatically send the economic impact payment to those eligible.

Tax filers with adjusted gross income up to $75,000 for individuals and up to $150,000 for married couples filing joint returns will receive the full payment. For filers with income above those amounts, the payment amount is reduced by $5 for each $100 above the $75,000/$150,000 thresholds. Single filers with income exceeding $99,000 and $198,000 for joint filers with no children are not eligible.

Eligible taxpayers who filed tax returns for either 2019 or 2018 will automatically receive an economic impact payment of up to $1,200 for individuals or $2,400 for married couples. Parents also receive $500 for each qualifying child.

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 economic impact payment will be deposited directly into the same banking account reflected on the return filed.

Please select this link to learn more from the IRS' website.