Stimulus Check Information

Individual Taxpayer Economic Impact Payments Fact Sheet 

By now, most of you have heard that the CARES Act legislation passed early last week directs the IRS to begin distributing “economic impact payments” to individual taxpayers. Read on for a comprehensive overview of this program as it currently stands: 

  • Relief payments will be for up to $2,400 for married couples filing joint returns and $1,200.00 for single taxpayers. 

  • An additional payment of $500 will be sent for each child under 17 claimed as a dependent 

  • The adjusted gross income threshold to receive the full economic relief payment are as follows: 

  • $75,000 for single people 

  • $150,000 for married filing jointly 

  • $112,500 for head of household 

  • For taxpayers with higher reported income than the above amounts, you may still be eligible for a reduced economic relief payment up to the following thresholds: 

  • $99,000 for single people 

  • $198,000 for married filing jointly with no children 

  • The IRS will determine your eligibility/payment amount based on your 2019 tax return information. If you have not filed your 2019 individual tax return, then they will use the information from your 2018 tax return. 

  • Relief payments will be distributed via direct deposit, using the bank account information from your 2019 tax return.  

Most people will not need to do anything to receive this payment. In the event you may have a unique tax situation, please read on for special provisions: 

  • If you have not filed an individual tax return for 2018 or 2019 (see next bullet point for exceptions), you will not be eligible for an economic relief payment until you do. These payments will be available until the end of the year so be sure to get your return filed to get your relief payment.  

  • For individuals who are not otherwise required to file a tax return such as certain senior citizens, Social Security recipients and railroad retirees, the IRS will use the information from your most recent Form SSA-1099 or Form RRB-1099 to generate your payment. Since these forms do not provide information about dependents, these types of benefit recipients will only receive the $1,200 payment, without any additional amount for dependents.  

  • For those that did not provide their bank account information on their tax return, in the coming weeks, the Department of the Treasury plans to develop a web-based portal for individuals to provide their banking information. When this happens, we will provide you with the link directly. Please be wary of clicking on any links sent to you claiming to be this portal unless it comes directly from us or someone else you trust.  

  • You may have already gotten married, divorced or had a child this year. Unfortunately, these tax status changes will not be taken into consideration when calculating your payment amount.  However, the stimulus check is an advance payment of a tax credit on your 2020 income tax return.  If you had a child in 2020, you will receive the additional $500 when you file your 2020 return. 

 

Sound Tax & Accounting is committed to providing continuing support to all our individual and business clients during this unprecedented event. We work hard to stay on top of the latest news, developments, legislation and policy changes to keep our clients as informed as possible.

That said, things are changing and developing quickly and the best way to get the latest information is to check directly with the IRS.gov/coronavirus page frequently.  

If you have any questions or need assistance, please reach out via our contact form by clicking here. We are happy to help!  

COVID-19Clarissa Heneghen