U.S. Government Economic Impact Payments
Dear Clients:
I have received several questions and concerns regarding the Economic Impact Payments which are starting to roll out this week. Please refer to the information below and let me know if you have any additional questions!
Who is eligible?
U.S. residents will receive the Economic Impact Payment of $1,200 for individual or head of household filers, and $2,400 for married filing jointly if they are not a dependent of another taxpayer and have a work eligible Social Security number with adjusted gross income up to:
$75,000 for individuals
$112,500 for head of household filers and
$150,000 for married couples filing joint returns
Taxpayers will receive a reduced payment if their AGI is between:
$75,000 and $99,000 if their filing status was single or married filing separately
112,500 and $136,500 for head of household
$150,000 and $198,000 if their filing status was married filing jointly
The amount of the reduced payment will be based upon the taxpayers specific adjusted gross income.
Eligible retirees and recipients of Social Security, Railroad Retirement, disability or veterans' benefits as well as taxpayers who do not make enough money to normally have to file a tax return will receive a payment. This also includes those who have no income, as well as those whose income comes entirely from certain benefit programs, such as Supplemental Security Income benefits.
Please note that the expats living in foreign country will qualify for the Economic Impact Payment as long as they fall within the income threshold and have filed either a 2018 or 2019 income tax return.
How much will I receive?
If you have filed your 2018 or 2019 tax return, I found this helpful tool that will estimate your payment amount: https://freefile.intuit.com/stimulus-payment/
When and how will I receive my payment?
A lot of people have been asking me when and how they will receive the payment. The IRS announced last week that on April 17, they will be launching a tool that will allow all taxpayers to see the status of their payment and also update their bank information in order to receive the payment directly deposited.
Please follow this link: https://www.irs.gov/coronavirus/economic-impact-payments and click on the "Get My Payment" box. It is not currently activated but will be available soon. I urge everyone to login in and make sure the information the IRS has is valid and up to date.
If you do not wish to receive your payment by direct deposit, please expect a delay in the processing of your payment.
If you have any additional question or concerns regarding the above information please do not hesitate to contact me by either texting or calling (305) 697-5331 or e-mailing karina@heegaardcpa.com.
Thank you and be safe!
Karina Heegaard, CPA