Important Information about Economic Impact Payments

Important Information about Economic Impact Payments

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As part of the Coronavirus Aid, Relief and Economic Security (“CARES”) Act, the U.S. Federal Government began delivering “Economic Impact Payments” to eligible Americans. These direct cash payments to individuals and families are for financial relief during the coronavirus pandemic and are sometimes referred to as “stimulus checks.”

Here are a few things to keep in mind:

  • The Internal Revenue Service (IRS) is responsible for the timing, amount and distribution of these payments and has stated that payments will be sent in waves over the course of multiple weeks into July 2020.
  • The IRS will distribute payments using the information that the IRS has on file for each eligible individual or family.
  • For most of the recipients, payments will be deposited directly into the same bank account that they have most recently used to receive a tax refund or monthly Social Security payment.
  • Others will receive paper checks in the mail at the address that the IRS has on file for that individual.
  • Direct deposits are posted for open accounts on the effective date set by the Treasury.

You may have questions about these payments and here are answers to questions you may have, and tools you can use:
 
Taxpayers who have already filed tax returns for 2019 or 2018 and the IRS already has their banking information
 
Eligible taxpayers who filed tax returns for 2019 or 2018 will receive the payments automatically if the IRS already has their banking information. Automatic payments will also go in the near future to those receiving Social Security retirement, disability (SSDI), survivor benefits and Railroad Retirement benefits. This group of people are not required to do anything and should NOT use the Get My Payment tool or the Non-filers: Enter Payment Info tool. This group will also not be able to track the status of their EIP because it will be automatically deposited to their bank account.
  
Taxpayers who have already filed tax returns for 2019 or 2018 but the IRS does NOT have their banking information
 
Taxpayers who fall under this category should use the Get My Payment tool. They can provide their banking information and also track the status of their EIP.
 
Taxpayers who have NOT filed their 2018 or 2019 tax return
 
Taxpayers who have a filing requirement and who fall under this category should file their 2019 tax return as soon as possible. This is the only way to let the IRS know your new information.
 
This group of people should NOT use the Get My Payment or the Non-filers: Enter Payment Info tool. This group will also not be able to track the status of their EIP because once they file their 2019 tax return, their EIP will be automatically deposited to their bank account.
 
Non-filers who are not required to file a tax return, including those with too little income to file
 
Non-filers who fall under this category should use the Non-filers: Enter Payment Info tool. To check the status of their EIP, non-filers should log back in to the Non-filers: Enter Payment Info tool and click on ‘Check E-File Status’.
 
Important Note:
The “Get My Payment” tool is not intended to update or correct bank information, only to include information that was not previously provided. If you have only filed a 2018 tax return and need to change your bank account information or mailing address, file your 2019 taxes electronically as soon as possible. That is the only way to let the IRS know your new information. If you have not yet filed your 2019 return, the EIP will be sent according to the information included on your 2018 return.
 
I have more questions about the amount of my payment.
 
Is my payment in my account? Check account online is best:

If you’re receiving your payment through direct deposit:

  • Monitor your account  
  • The description of the deposit in your account will include the word “IRS.” Keep in mind, the IRS is using the same description for both the stimulus payment and income tax refund.

If you’re receiving your payment through paper check:

Who can help me?

  • Visit the IRS website for information regarding eligibility, requesting, calculating and receiving payments.
  • You can check status of your payment, payment type (direct deposit or paper check), and how to set up a direct deposit, if available, at the IRS Get my Payment website.

What can I do to help protect against fraud? Take these steps.

  • Check the IRS website for information about your payment status and account information.
  • Make sure your contact information is accurate in your account.
  • Set up security and account alerts.
  • Visit the Federal Trade Commission’s Coronavirus Scam Tips for tips on how to recognize potential scams and learn more about how to keep your accounts secure. 
Economic Payments for SSI and VA Recipients to Automatically Receive EIP
 
Supplemental Security Income (SSI) recipients as well as Veterans Affairs recipients will automatically receive a $1,200 EIP with no further action needed on their part.
 
The law also provides eligible taxpayers with qualifying children under age 17 to receive an extra $500. For taxpayers who filed tax returns in 2018 or 2019, the child payments will be automatic. However, many benefit recipients typically aren’t required to file tax returns. If they have children who qualify, an extra step is needed to add $500 per child onto their automatic payment of $1,200 if they didn’t file a tax return in 2018 or 2019.
 
Those who receive these benefits – including VA, Social Security retirement or disability benefits (SSDI), Railroad Retirement benefits or SSI – and have a qualifying child, can quickly register using the Non-Filers: Enter Payment Info tool.
 
SSI Recipients
The Treasury Department, not the Social Security Administration, will make these automatic payments to SSI recipients. Recipients will generally receive the automatic payments by direct deposit, Direct Express debit card, or by paper check, just as they would normally receive their SSI benefits. IRS projects the payments for this group will go out no later than early May. For those with dependents who use Direct Express debit cards, additional information will be available soon regarding the steps to take on the IRS web site when claiming children under 17.
 
Veterans Affairs Recipients
The Treasury Department, not the VA, will make these automatic payments. Timing on the payments is still being determined. Recipients will generally receive the automatic payments the way they receive their current benefits. VA recipients who quickly provide IRS with required information about qualifying children can receive $500 per dependent child in addition to their $1,200 individual payment. If beneficiaries do not provide their information to the IRS soon, they will receive their $500 per qualifying child at a later date, depending on when they complete the registration process.
 

 Thank you for being a valued client.