To our clients, friends and colleagues:
There has been quite a bit of information circulating about the Economic Impact Payment checks lately. Please note below a recently released FAQ guidance on these payments.
Economic Impact Payments
How much is the Economic Impact Payment?
Eligible individuals with adjusted gross income up to $75,000 for single filers, $112,500 for head of household filers and $150,000 for married filing jointly are eligible for the full $1,200 for individuals and $2,400 married filing jointly. In addition, they are eligible for an additional $500 per qualifying child under the age of 17.
How do I update my information to receive the Economic Impact Payment?
The IRS has released the Get My Payment tool https://www.irs.gov/coronavirus/get-my-payment This application will allow the taxpayer to inform the IRS of their bank account information if not already on file and if the payment confirm payment type: direct deposit or check, and enter bank account information for direct deposit, if not already on file. If you would like the stimulus payment to be directly deposited into your bank account and have not provided direct deposit information on your 2018 and 2019 tax returns, use the link to let the IRS know where to send the direct deposit. If you have already filed your 2019 tax return with your bank account information, no action is necessary and you will not be able to make any changes to the direct deposit information. The Get My Payment feature will be unavailable if the payment has already been scheduled for delivery. Bank account information can only be updated if the payment has not yet been scheduled for delivery.
Do I need to take action to receive the Economic Impact Payment?
No additional action is needed by taxpayers who:
- have already filed their tax returns this year for 2019. The IRS will use this information to calculate the payment amount. You will not be able to change your bank account.
- haven’t filed yet for 2019 but filed a 2018 federal tax return. For these taxpayers the IRS will use their information from 2018 tax filings to make the Economic Impact Payment calculations.
For security reasons, the IRS plans to mail a letter about the economic impact payment to the taxpayer’s last known address within 15 days after the payment is paid. The letter will provide information on how the payment was made and how to report any failure to receive the payment. If a taxpayer is unsure they’re receiving a legitimate letter, the IRS urges taxpayers to visit IRS.gov first to protect against scam artists. Remember, the IRS will not call, text you, email you or contact you on social media asking for personal or bank account information – even related to the economic impact payments. Also, watch out for emails with attachments or links claiming to have special information about economic impact payments or refunds.
Do I have to pay income taxes on my stimulus check?
No, you do not have to pay income taxes on your stimulus check.
Lastly, as a reminder on revised filing and payment deadlines:
2019 Tax Payments and 2020 Estimated Tax Payments
Please see below for a summary of the automatic extensions provided by the Internal Revenue Service related to 2019 personal income tax filing and payment and 2020 estimated tax payments. If additional time is needed past 7/15/20, taxpayers can request an extension to 10/15/20.
Please stay safe.
For Up to Date IRS News Information
This communication is intended to provide general information on legislative COVID-19 relief measures as of the date of this communication and may reference information from reputable sources. Although our firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.