COVID-19: Economic Impact Payments

Here are some highlights about Economic Impact Payments to individuals. 

Most individuals will receive $1,200.  Joint taxpayers will receive $2,400.  An additional $500 is available for each qualifying child.  Information is based on the taxpayer’s most recent tax filing.  The amount paid now will be reconciled on next year’s tax return based on the taxpayer’s 2020 situation. 

If taxpayers have an adjusted gross income (AGI) of $75,000 or less ($112,500 or less head of household and $150,000 or less married filing joint), they should be eligible for the full $2,400.  The rebate phases out completely at $99,000 for single taxpayers ($146,000 for head of household and $198,000 for married filing joint). 

In short, the payment will be based on 2019 or 2018 tax filing, whichever is the most recent but will be reconciled against 2020 income.  The rebate functions as an “advance”, so if your income from 2019 or 2018 doesn’t qualify you for the rebate and your 2020 income does, you will receive the rebate when you file your 2020 income tax return.

You cannot get a payment if someone claims you as a dependent.

The IRS will utilize the banking information provided on your 2019 or 2018 tax return to electronically deposit your payment to your account.  For those who do not provide banking information with their tax filing (example: owe a balance and choose to write a check versus electronic deduction), the IRS will provide a web portal for individuals to provide their banking information so they can receive a direct deposit versus a check in the mail.

The IRS will send out letters when payments are deposited.  It is expected that payments will begin by May 1.

For additional information, visit the IRS website here:  https://www.irs.gov/coronavirus/economic-impact-payments.