Last week, as unemployment rates skyrocketed, the federal government passed a $2.2 trillion stimulus bill intended to give economic impact payments directly to American citizens during the COVID-19 pandemic.
The Treasury Department and the Internal Revenue Service (IRS) announced that the distribution of economic impact payments will begin in the next two weeks.
What is the economic impact payment and who is eligible?
Individuals whose adjusted gross income was less than $75,000 will receive $1,200.
Married couples filing jointly who make less than $150,000 will receive $2,400.
For people who make more, the payment amount is reduced by $5 for each $100 above the $75,000/$150,000.
Parents also receive an additional $500 for each qualifying child.
When will I get my money?
Treasury Sec. Steve Mnuchin said on April 2 that the first economic impact payments will be delivered via direct deposit within two weeks. Some people without direct deposit information may not get checks until mid-August or later, according to a memo obtained Thursday by The Associated Press.
Starting the week of May 4, the IRS will begin issuing paper checks to individuals, the memo says. The paper checks will be issued at a rate of about 5 million per week, which means it could take up to 20 weeks to get all the checks out. That timeline would delay some checks until the week of Aug. 17.
Who is not eligible to receive an economic impact payment?
Single filers whose income exceeds $99,000
Joint filers with no children whose income exceeds $198,000
Using the guidelines spelled out in the bill, we're providing a calculator to help you figure out the amount that you're likely to receive.
What do I need to do to receive my check?
According to the IRS, most people will not have to do anything to receive their check. However, some seniors and other people who do not typically file returns will need to submit a simple team return.
How will it work?
The economic impact payment will be deposited directly into the same banking account on the latest tax return filed.
If you have not filed your 2019 tax return, the IRS will use information from your 2018 tax filing to calculate payment.
The Treasury is planning to develop a web-based portal for people to provide their banking information to the IRS online in an effort to get people payments immediately as opposed to waiting for a check by mail.
More information can be found on the IRS website.