IRS Economic Stimulus Payment (For Individual Taxpayers)

IRS has an excellent website for FAQs. Please review this and our guidance below for answer to your questions:
https://www.irs.gov/coronavirus/economic-impact-payment-information-center


UPDATED 5/28/2020 - IRS may be sending some taxpayers a VISA DEBIT CARD instead of a check. Please check your mail as it may end up looking like "Junk Mail"
If you receive an Economic Impact Payment Card, it will arrive in a plain envelope from “Money Network Cardholder Services.”  The Visa name will appear on the front of the Card; the back of the Card has the name of the issuing bank, MetaBank®, N.A. Information included with the Card will explain that the card is your Economic Impact Payment Card.  Please go to EIPcard.com for more information.



UPDATED 5/13/2020 - If you still have not received your stimulus payment, do not panic. The IRS is mailing checks out to your home each week. The lowest income taxpayers are slated to receive the checks first. Higher income taxpayers (earning over $100,000 per year) may need to wait until July or August. The IRS has not committed to this schedule and it could  change at any time, so please be patient. Here is a link to two great articles: 

https://www.forbes.com/sites/zackfriedman/2020/04/21/stimulus-checks-schedule/#721d1a457b84

 https://www.forbes.com/sites/jenniferbarrett/2020/05/13/no-stimulus-check-yet-heres-how-to-determine-when-it-may-arrive/#4d77ea62280c



UPDATED 5/6/2020 - We receiving reports that some taxpayers that received stimulus are getting less than what they expected based on the calculation. At this point, there is nothing to do. The IRS is going to send all stimulus recipients a
letter in the mail 15 days after paying them. An IRS spokesman says the letter will confirm how the money was sent and tell taxpayers the best way to alert the IRS if anything needs to be corrected. So, assistance is TBD — but it is coming. Keep an eye on your mailbox.

Remember, the check is technically an advance payment of a refundable credit on your 2020 tax return, which you won’t have to file until April 15, 2021. Assuming your income is similar or less in 2020, you will receive the difference when you file your 2020 tax return. 

https://money.com/stimulus-check-wrong-amount/



UPDATED 4/26/2020 - We have been receiving an EXTREME amount of inquiries about issues with this stimulus and the IRS Website.  "Status Not Available" is very common.  

We want to let you know that YOU ARE NOT ALONE. The IRS is overloaded and updating their website daily.  Our advice to clients at this point is to re-visit the IRS website (Below) 

https://www.irs.gov/coronavirus/get-my-payment

How to Get Your Stimulus

Most individuals will automatically receive based on your 2018/2019 direct deposit. However, if you do not typically get refunds, here’s what you do.  Go to IRS website and click "Get My Payment" tool. This allows you to check the status of your economic impact payment. The tool provides information about your payment status, payment type, and whether the IRS needs more information, such as a bank account and routing number. To use the tool, you will need to enter your name, Social Security number, date of birth, and address.
 
The "Get My Payment" tool can be accessed at www.irs.gov/coronavirus/get-my-payment .

​Individuals not required to file a 2018 or 2019 tax return can enter their payment information at www.irs.gov/coronavirus/non-filers-enter-payment-info-here .

Summary of Stimulus Payment 
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The CARES Act includes stimulus payments of $1,200 for each individual and $500 for each dependent child, defined by the child tax credit rules as under age 17.
 
Who and How Much?
Individuals with adjusted gross income (AGI) up to $75,000 a year are eligible for the full $1,200 payment. The payment is reduced by $5 for every $100 in income above $75,000. The payment amount is entirely phased out at an AGI of $99,000. Married filing joint couples with AGIs up to $150,000 a year are eligible for a $2,400 payment. The payment is reduced by $5 for every $100 in income above $150,000. The payment amount is entirely phased out at an AGI of $198,000 (if the taxpayers have no dependent children). Married couples also will receive an additional $500 for every dependent child under 17.
 
Example - MFJ with no children. Keith and Norma are married filing joint. They have no dependent children. If they have AGI of $150,000 or less, they are eligible for a $2,400 payment. If they have AGI above $150,000, their rebate will be reduced and finally phased out at an AGI of $198,000.  
Example - MFJ with two children. Chris and Pat are married filing joint. They have two dependent children under age 17. If they have AGI of $150,000 or less, they are eligible for a $3,400 payment. If they have AGI above $150,000, their rebate will be reduced and finally phased out if their income hits the top of the threshold amount.  
Head of household filers with AGIs up $112,500 a year are eligible for the full $1,200 payment and an additional payment of $500 for each dependent child under age 17. The payment is reduced by $5 for every $100 in income above $112,500. Head of household taxpayers will also receive an additional $500 per dependent child under age 17. With no eligible children, a head of household filer is phased out at AGI of $137,000. With one eligible dependent child, a head of household filer is entirely phased out of the rebate payment at AGI of $146,400.
 
Example. Head of Household- no children under 17. Heather has an 18-year-old high school senior living with her and qualifies as a head of household filer. If her AGI is $100,000, Heather’s payment is $1,200. Her dependent child does not qualify her for the additional $500 payment because the child is not under age 17. If Heather’s dependent child is under age 17, her payment is $1,700.  
Phaseout of the rebate. If your income is above the threshold amounts, a reduced payment will result. The reduced amount using your own income (AGI) can easily be calculated using the Washington Post calculator:

​LINK TO CALCULATOR:  https://www.washingtonpost.com/graphics/business/coronavirus-stimulus-check-calculator/
 
What needs to be done to get the Stimulus Rebate?
Nothing. The IRS will deposit the calculated amount directly into your bank account, using the AGI and the bank information on your 2019 tax return. If your 2019 return hasn’t been filed, the IRS will use the AGI and the bank information from your 2018 tax return. If there’s no bank information on the return, the IRS will mail a check.
 
When Will the Payments Arrive?
The IRS says that a direct deposit should be in your bank account in about three weeks. Checks should start arriving in six to eight weeks.
 
2020 Tax Return
Technically the stimulus rebate is a 2020 refundable tax credit. The payment received in the next few weeks is an IRS advance. If you have less income in 2020 than in 2019 because of layoffs, reduced hours and closed businesses, and your rebate payment was reduced by the income threshold, you’ll receive a credit for the difference on your 2020 return. If for some reason, you receive too much of an advanced payment, you do not have to pay back the excess.

What if I owe Back Taxes?  
If you owe back taxes to the IRS, will the government use my stimulus check to pay back taxes? No, the federal government will not take your stimulus check to pay back taxes. The same is true if you’re currently on an installment payment plan for your taxes as well.

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