IRS Coronavirus Stimulus Check Update

IRS Coronavirus Stimulus Check Update

IRS Coronavirus Stimulus Check Update

Stimulus Update: Due to the chaos caused by the coronavirus pandemic, the Treasury Department and the Internal Revenue Service has authorized and distributed two rounds of coronavirus stimulus checks in 2020.

These economic impact payments will be sent to eligible taxpayers automatically. Citizens are not required to do anything to receive their stimulus payments.

However, many taxpayers who are normally not required to file a tax return will be required to file a tax return in order to receive their stimulus checks.

Who is Eligible to Receive a Stimulus Check?

Individual taxpayers with an income of $75,000 or less and married couples filing jointly with an income of $150,000 or less are eligible to receive the full economic impact payment. For taxpayers with incomes above this threshold, the stimulus check will be reduced by $5 for every $100 earned.

Individual taxpayers with incomes above $99,000 and married couples filing jointly with incomes above $198,000 are not eligible to receive a stimulus payment. This does not take into account payments for qualifying children, however.

Eligible taxpayers who filed tax returns in 2019 or 2018 are not required to do anything as the IRS will send their economic impact payments automatically. The first round of stimulus was $1,200 for individuals and $2,400 for married couples filing jointly, as well as $500 per qualifying child under the age of 17.

Will the IRS Know Where to Send My Stimulus Check?

Many eligible taxpayers do not need to do anything in order to receive their stimulus payment. The IRS will already have all the data they need to determine whether a taxpayer is eligible, as well as where to send it.

The IRS will primarily use tax returns filed in 2019, but taxpayers who have not filed their 2019 returns will still have their 2018 returns used to determine whether someone is eligible for a stimulus payment.

Stimulus payments will be deposited into the same bank accounts stated on the tax return filed.

What if the IRS Does Not Have Direct Deposit Information on File?

The Treasury Department and the IRS have already produced a web-based portal for individuals who need to supply their banking information. If this information is not provided, a paper check will be sent to the taxpayer’s last known address.

Can I Receive a Stimulus Payment if I Normally Do Not File a Tax Return?

Yes, the IRS will also use information provided through Forms SSA-1099 and RRB-1099 to determine whether people are eligible for economic impact payments.

Due to the fact these tax forms do not include information about any dependents, taxpayers in this situation will need to inform the IRS through their 2020 tax returns that they are entitled to additional economic impact payments.

Will I Get a Stimulus Check if I Owe Taxes?

Do I still get a stimulus check if I owe back taxes?

Yes. The IRS does acknowledge that a small number of taxpayers may be required to file a tax return but have failed to do so for 2018 and 2019.

To receive payment, taxpayers are required to file tax returns as soon as possible in order to ensure they receive their stimulus checks.

Are Economic Impact Payments Time Limited?

Taxpayers who do not automatically receive the economic impact payments they are entitled to are advised to contact a tax professional if they have outstanding returns. These payments are available throughout 2020 and into 2021.

Where Can I Get the Latest Information on Coronavirus Stimulus Checks?

The IRS will post all the latest information on their website as and when it becomes available. Taxpayers are advised against calling the IRS directly as, due to coronavirus restrictions, there are fewer staff present in IRS offices.

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