Three Things You Need To Know About The COVID-19 Economic Impact Payments

The IRS issued a news release about the economic impact payments yesterday, March 30, 2020.  The news release was numbered IR-2020-61 and covered Coronavirus COVID-19 tax relief.  It covers the income guidelines they will be using to issue the payments plus the information they will be using to determine the amount and where to send the payment.  Below is a quick summary of the most important details.  

Eligibility

Gross Income Up To:
$75,000 for individuals
$150,000 for married couples filing joint returns
(Prorated if you are between $75,000 - $99,000 for individuals, or $150,000 - $198,000 for couples.)

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.

Amount Of The COVID-19 Economic Impact Payments

$1,200 for individuals
$2,400 for married couples
$500 for each qualifying child is also available to parents

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.

How Does The IRS Know Where To Send Payments To?

If you have already filed your 2019 taxes, the IRS will use that information to calculate and send your economic impact payment by direct deposit.  If you didn't file a tax return in 2019 or 2018, then the IRS will be supplying more info regarding what you need to do to supply them your income info, direct deposit, etc.  You can check for updated info at https://www.irs.gov/coronavirus.

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.

These three things will answer the most common questions, but be sure to read the full press release at the link below.

Source: - https://www.irs.gov/newsroom/economic-impact-payments-what-you-need-to-know

Last Updated: 3-31-2020