Stimulus Payments

April 15, 2020

The Coronavirus Aid, Relief and Economic Security (CARES) Act of 2020 provides for a “stimulus payment” (officially called Economic Impact Payment) to most United States citizens of $1200 ($2400 for couples). It also provides for an additional $500 for dependents under the age of 17. 

Individuals are entitled to the full payment if their income is less than:

     $75,000 for individuals;
     $112,500 for head of household filers and
     $150,000 for married couples filing joint returns

Individuals are entitled to a reduced payment if their adjusted gross income 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 taxpayer’s specific adjusted gross income.

NON TAX FILERS ARE ELIGIBLE

You are also eligible if you receive Social Security retirement, survivors or disability benefits; and SSI benefits. You are also eligible if you receive Railroad Retirement, [disability] or veterans' benefits. 

People who normally don’t make enough to have to file a tax return will also 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.

Retirees who receive either Social Security retirement or Railroad Retirement benefits will also receive payments automatically.

For most taxpayers, payments are automatic and no further action is needed. This includes tax payers who filed a tax return in 2018 or 2019.

NOT ELIGIBLE

The following persons are not eligible: 

     High income tax filers. The income limits are:

        $99,000 for single individuals 
        $136,500 for people who file as “head of household”
        $198,000 if you are married and filed jointly

   People who are over age 16 if they are claimed as a dependent on another person’s tax return

   Nonresident aliens are not eligible

HOW DO PEOPLE GET THE STIUMULUS PAYMENTS? 

For most people, no additional action is needed.

If you filed a tax return for 2018 or 2019, you don’t need to do anything further. The IRS will use this information to determine your eligibility and where to send your payments.

If you receive Social Security and Railroad Retirement benefits, and don’t usually file a tax return, you don’t need to take further action. Recipients will receive these payments as a direct deposit or by paper check, just as they would normally receive their benefits. Social Security Disability Insurance (SSDI) recipients are also part of this group who don't need to take action.

SSI Recipients are eligible to receive the stimulus payments and they do not have to take any further action. SSI recipients will automatically receive their Economic Impact Payments directly to their bank accounts through direct deposit, Direct Express debit card, or by paper check, just as they would normally receive their SSI benefits. The Treasury Department anticipates SSI recipients will receive these automatic payments no later than early May.

However, if a person gets Social Security retirement, Railroad Retirement, Social Security Disability (SSDI), or SSI benefits, and he/she has a qualifying child (or children) under the age of 17, that person should take an additional step to receive $500 per qualifying child. They should go to the IRS web site and go to the “"Non-Filers: Enter Payment Info Here” link (https://www.irs.gov/coronavirus/economic-impact-payments) to provide simple information so you can get your payment sooner.

Low income workers, and certain veterans and individuals with disabilities who aren’t required to file a tax return, are eligible for the Economic Impact Payments. They should also use the “Non-Filers: Enter Payment Info Here” link at the IRS web site to register their address and obtain their payment. 

For more information go to: https://www.irs.gov/coronavirus/economic-impact-payment-information-center

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