The IRS has posted more information about the stimulus payments. While the IRS website still says “Stimulus payment checks: No Information available yet, no sign-up needed” there is a brief update of how it will work in the format of question and answer. What you need to know:
ELIGIBILITY:
You are eligible to receive the payment if you are single with gross income under $75,000 or married with gross income under $150,000. If under these amount you will receive $1,200 per person. If over these amounts, deduct $5 for every $100 over the threshold; then you will be ineligible for any payment if your income is more than $99,000 (single) and $198,000 (married). Also parents will receive $500 per qualifying child. It is unclear if there is any phase out on the child payment at this time. We will watch for more information on this.
TIME FRAME:
The IRS is trying to get payments out in the next three weeks. Keep in mind they are also short staffed in many offices, so be patient. Also, at this time, there is no way to look up to see when you will receive your payment. In addition, there is no discussion of this being a service that is offered.
HOW WILL YOU GET THE PAYMENT:
The IRS will send the payments automatically to the last address or direct deposit information you have on file from your 2019 return if filed or your 2018 tax return.
MISSING DIRECT DEPOSIT INFORMATION:
If the IRS does not have your direct deposit information they are working with Treasury to set up a web-based portal for you to get them your direct deposit information. We are monitoring IRS announcements, so we can share updates as soon as they are released.
NOT REQUIRED TO FILE A TAX RETURN:
If you do not normally have to file a tax return you should file a federal return. You can use the free file on the IRS website for this at https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free. The IRS is also working on coming up with another filing system to allow you to provide the necessary information for the payment that is more streamlined than filing a return. More instructions are to come.
HOW LONG DO YOU HAVE TO CLAIM PAYMENT:
The payments are available through the end of 2020. If you are behind on filing and need to work with a preparer, you have plenty of time to get your 2018 and/or 2019 returns completed. The federal deadline to file is July 15.
We will continue to post additional information as it becomes available.
The Wassman CPA Services website and blog is meant to offer general information to our readers. The information provided is not intended to replace or serve as a substitute for any accounting, tax or other professional advice, consultation or service. You should contact Wassman CPA Services for advice concerning specific matters prior to making any decisions.
