Economic Impact Payment Amount
· Up to $1,200 for individuals or $2,400 for married couples. Parents also receive $500 for each qualifying child.
· Is based on Adjusted gross income (AGI). This information can be found on line 7 of your Internal Revenue Service (IRS) Form 1040.
· AGI 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.
· Eligible taxpayers who filed tax returns for either 2019 or 2018 will automatically receive an economic impact payment via direct deposit. Social Security beneficiaries who typically do not file a tax return will automatically get the payment.
o Rebates are technically tax credits that are based on the Adjusted Gross Income amount in the 2019 tax return, if filed, or 2018 if not. If a return hasn’t been filed in 2018 or 2019, no payment will be issued, unless you already receive social security benefits.
o No minimum income or tax payments are required to receive the rebate payment, so all households need to consider filing a return if they haven’t.
o No payments will be made to individuals (including children) without a valid social security number on file at the IRS.
· No application is required, and payments will be made automatically by the IRS based on the information in your tax return. The Treasury has said the payments will be made within three weeks - but that will likely be direct deposits to household bank accounts when the IRS has a record of the account. Other payments are to be made by check or debit card issuance and will likely take longer.
· However, if you have not filed taxes in 2018 or 2019, it is recommended that you free file taxes through the IRS Free File program to ensure eligibility.
· Additionally, the IRS will soon provide information instructing people on how to file a 2019 tax return with simple information: filing status, number of dependents and bank account information.
· If you do not have a bank account, the IRS will mail your check to your address on your tax return.
· These economic impact payments will be available throughout the rest of 2020.
· The deadline to file 2019 taxes has been extended to July 15th.