Stimulus Check Information
The Coronavirus Aid, Relief, and Economic Security (CARES) Act provides a one-time rebate to taxpayers, a modification of the tax treatment of certain retirement fund withdrawals and charitable contributions; a delay of employer payroll taxes and taxes paid by certain corporations; and other changes to the tax treatment of business income and net operating losses.
Summary: Economic Impact Payments
- Full, $1,200 economic assistance payments for American adults, including for the lowest income taxpayers, and $500 per child under the age of 17.
- All U.S. residents with adjusted gross income up to $75,000 ($150,000 married), who are not a dependent of another taxpayer and have a work eligible social security number, are eligible for the full $1,200 ($2,400 married) rebate. In addition, they are eligible for an additional $500 per child.
- The advance payment of rebates is reduced by $5 for every $100 of income to the extent a taxpayer’s income exceeds $150,000 for a joint filer, $112,500 for a head of household filer, and $75,000 for anyone else (including single filers).
- This is true even for those who have no income, as well as those whose income comes entirely from non-taxable means-tested benefit programs, such as SSI benefits.
- You can check on the status of your payment here.
Social Security and SSI recipients are eligible for the rebate payments:
- Everyone is eligible for the full rebate payments as long as they have an SSN and their household income is not too high. Rebate payments start to phase out at the thresholds of $75,000 single, $112,500 head of household, and $150,000 married.
- This includes Social Security beneficiaries (retirement, disability, survivor) and Supplemental Security Income (SSI) recipients.
- Like other tax credits, these payments do not count as income or resources for means-tested programs. Receiving a rebate will not interfere with someone’s eligibility for SSI, SNAP, Medicaid, ACA premium credits, TANF, housing assistance, or other income-related federal programs.
- These rebates do not affect receipt of state or federal unemployment compensation.
- Read more about the CARES Act and Social Security here.
Frequently Asked Questions:
How will the IRS know where to send my payment?
- The IRS will calculate and automatically send the economic impact payment to those eligible. Payments will be directly deposited into your bank account using information from your 2018 or 2019 tax returns. The IRS began making deposit payments in mid-April.
I am not typically required to file a tax return. Can I still receive my payment?
- Social Security and VA beneficiaries who do not file taxes will receive payment in the same way they receive their checks. If you typically receive a paper check, the IRS will mail a paper check to you about three weeks after direct deposits are made. The paper checks will be issued at a rate of about 5 million per week, which could take up to 20 weeks for all individuals to receive their checks.
- However, the IRS is still working to ensure that low-income seniors who receive Supplemental Security Income (SSI) and those who receive Social Security Disability Insurance can also be paid directly.
- For other taxpayers who do not file taxes, you will need to file a “simple tax return” that will likely only ask a few questions including your name, your social security number, any dependents, and your deposit information. You will then receive the payment via direct deposit. The IRS has created a website with guidance on how to file this. You can find this here.
Where can I get more information?
- The IRS will post all key information on IRS.gov/coronavirus as soon as it becomes available.
Don’t see an answer to your question? You can read more here or contact my Palm Desert Office at (760) 424-8888.