What You Need to Know About the Government Stimulus Payments
Updated April 17 at 10:30 a.m.
You may have heard recently that the Economic Impact Payments are starting to be paid. Here is what you need to know.
The payments are generally for all US residents with adjusted gross income up to $75,000 or $150,000 married filing joint (MFJ). Rebates are $1,200 ($2,400 MFJ) and an additional $500 per child under the age of 17. The rebates are phased out by $5 for every $100 over the threshold. Rebates are fully phased out at $99,000 single and $198,000 MFJ. The income limits are based on taxpayer’s 2019 tax returns. If a 2019 return has not been filed, the rebates will be based on 2018 tax returns and a true up will be made on the 2020 tax returns.
The IRS has recently updated their website with tools to help you determine your eligibility. Generally, no further action is required if you filed a 2018 or 2019 tax return or for most seniors and retirees. However, if you did not file a tax return and do not receive a 1099SA for social security benefits you may need to let the IRS know.
Non-filers are typically taxpayers with less than $12,200 (single) or $24,400 (married filing joint) of gross income in 2019 who are not required to file a tax return. Non-filers can use this IRS link to submit your information to the IRS for payment. You will need to provide the following information:
- Full name, current mailing address and an email address
- Date of birth and valid Social Security number
- Bank account number, type and routing number, if you have one
- Identity Protection Personal Identification Number (IP PIN) you received from the IRS earlier this year, if you have one
- Driver’s license or state-issued ID, if you have one
- For each qualifying child: name, Social Security number or Adoption Taxpayer Identification Number and their relationship to you or your spouse
If you have moved or changed your direct deposit information since filing your last tax return, you should update your information with the IRS.
As a reminder, many things are changing rapidly with the COVID-19 relief provisions. Some recent updates include the following:
- IRS extends the payment due date for estimated tax payments originally due April 15 and June 15 to July 15.
- Iowa announced relief (Order 2020-03) for estimated tax payments due April 30 and June 30. Taxpayers may now base their estimated payments on 2018 income tax liability versus 2019 tax liability. In addition, the annualized installment method is still available and may be the best option for many taxpayers.