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April 10, 2020 | Posted in:

Economic Impact Payments for Taxpayers and Non-Filers

The IRS has begun the process to distribute the Economic Impact Payments (also known as the Recovery Rebate or stimulus checks). Below are answers to your commonly asked questions.
 

How much is the Economic Impact Payment?

Individuals can expect a check of $1,200, or $2,400 for married couples filing jointly, along with $500 for each qualifying dependent child.

The check amount is reduced by $5 for each $100 above the $75,000/$150,000 thresholds until it completely phases out. See more FAQs from the IRS at →
 

Who is eligible for the Economic Impact Payment?

Per the CARES Act, U.S. citizens or resident aliens who have a social security number, cannot be claimed as a dependent of another taxpayer, and have adjusted gross income under certain limits are eligible for the one-time payment. The rebate amounts are phased out at the following AGI thresholds:
 

Begins to Phase Out Completely Phases Out
Individual $75,000 $99,000
Married Couple $150,000 $198,000
Head of Household $112,500 $136,500

 

The income information is based on the taxpayer’s 2019 tax return (or 2018 return if the taxpayer has not yet filed this year) and the taxpayer will automatically receive their Economic Income Payment check. If your direct deposit information has changed since these returns were filed, the Treasury plans to release a web-based portal in mid-April for individuals to securely provide their updated banking information to the IRS.

Individuals who receive Social Security retirement, survivors, Social Security Disability Insurance benefits, or Railroad Retirement benefits will also receive the Economic Impact Payment automatically.
 

What if I am a Non-Filer?

Eligible non-filers includes U.S. citizens with gross income less than $12,200 for 2019 ($24,400 for married couples) and others who were not required to file a 2019 federal income tax return.

Since non-filers do not have a 2019 or 2018 tax return for the IRS to review income information and payment details, you will have to manually submit it to the IRS.

The IRS has provided the following link for non-filers:
 


Non-Filers: Enter Payment Info Here

 

*NOTE:* Make sure you ONLY access this website through IRS.gov. Once you click on the blue “Non-Filers: Enter Payment Here” button, it will redirect you to a https://freefilefillableforms.com website.

The IRS is going to ask for sensitive private information such as name, birth date, Social Security number, bank account and routing numbers, driver’s license information, and details on qualifying children (if applicable). Scammers and identity thieves have been trying to use these stimulus checks as a way to gain this information, so make sure you double check the secure URL and proceed cautiously. The IRS and Treasury will NOT call you, so do not provide this information to a caller over the phone.

 

Turn to your Trusted CPA

If you still have questions, we are here to help. Contact Alloy Silverstein today for phone call or virtual meeting.

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