The Treasury Department, together with the International Revenue Services (IRS), is working hand in hand to cushion vulnerable citizens from the economic impacts of Covid-19. They introduce the economic impact payment, which is automatically distributed to the eligible families and individuals. Here is everything you need to know about the payment and what the IRS expects of you.
Are You Eligible for an Aid Check?
The stimulus check will give out an aid payment of up to $1,200 per adult. Every child that qualifies will receive up to $500. This means that a family of four could get a payment of up to $3,400. The conditions are subject to the stipulations that your income must fall below a specific threshold for you to benefit from the full stimulus payment.
The first condition states that individual tax filers with a gross income of up to $75,000 qualify for the full stimulus packages. The same applies to married couples with a joint income of $150,000 and full file joint tax returns.
Filers with annual gross income above this threshold see their stimulus reduced by $5 for every $100 above the $75,000 and &150,000, respectively.
Individuals filing annual tax returns above $99,000 are not eligible. The same applies to couples filing returns for incomes above $198,000.
If you are an eligible taxpayer who already filed your tax returns for the years 2019 and 2018, you will automatically get the economic impact payment of as much as $1,200. Married couples with the same eligibility get $2,400 and up to $500 for every child that qualifies.
How You Will Get the Money
Most eligible persons will not have to do anything or provide their credentials to get the money. This is because the IRS already has every individual’s direct deposit information. The IRS will use the tax information on their database to remit the economic impact payment to all eligible automatically.
IRS will use 2019 tax information for those who have filed their returns for the particular year. You do not need to worry if you have not because they will still use your 2018 tax return information to calculate payment. You will have the money in the same bank account you indicated when filing your returns.
What Should I Do If the IRS Does Nnot Have My Direct Deposit Information?
The treasury plans to come up with a web-based portal. This platform will enable taxpayers to provide their respective bank account and other relevant information for the economic stimulus payments. The primary aim for this is to help people get payments immediately and do away with the delays in check in the emails.
What Happens If You Did Not File Tax Returns for Both 2018 and 2019?
You can still get the economic impact payment if you have a tax filing obligation but failed to file your returns for 2019 and 2018. However, it would help if you did it first. The IRS is encouraging everyone to file their returns for these years as soon as possible.
Where Can You Get the Latest Information About Economic Impact Payment?
The IRS has an updated coronavirus page where they post all the latest information and instructions whenever they become available. We recommend that you visit this site if you are not sure of what to do. You can do the same if you expect the payment, but you are yet to submit some crucial information.
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