COVID-19 Stimulus Check: What to Expect

The Treasury Department and the IRS have announced the distribution of economic impact payment stimulus checks. These will begin in April and will be distributed automatically, with no action required for most people. Check on the status of your stimulus check.

 

Visit our Coronavirus FAQ webpage for more answers to stimulus check questions.

 

Who is eligible?

Tax filers with adjusted gross income up to $75,000 for individuals and up to $150,000 for married couples filing joint returns will receive the full payment. For filers with income above those amounts, the payment amount is reduced by $5 for each $100 above the $75,000/$150,000 thresholds.

Single filers with income exceeding $99,000 and $198,000 for joint filers with no children are not eligible.

Social Security recipients and railroad retirees who are otherwise not required to file a tax return are also eligible and will not be required to file a return.

 

What will I receive?

Eligible taxpayers who filed tax returns for either 2019 or 2018 will automatically receive an economic impact payment of up to $1,200 for individuals or $2,400 for married couples and up to $500 for each qualifying child.

 

What do I need to do?

The majority of people will not need to take any action. The IRS will calculate and automatically send the economic impact payment to those eligible.

For people who have already filed their 2019 tax returns, the IRS will use this information to calculate the payment amount. For those who have not yet filed their return for 2019, the IRS will use information from their 2018 tax filing to calculate the payment.

For Senior citizens, Social Security recipients and railroad retirees who are not otherwise required to file a tax return the IRS will use Form SSA-1099 or Form RRB-1099 to generate Economic Impact Payments to recipients of benefits reflected in the Form SSA-1099 or Form RRB-1099 who are not required to file a tax return and did not file a return for 2018 or 2019.

If you receive veteran’s disability compensation, a pension, or survivor benefits from the Department of Veterans Affairs, or your income level does not require you to file a tax return, then you need to submit information to the IRS to receive an Economic Impact Payment. You may do so through the IRS’ Non-Filer Fillable Form.

 

How will I receive it?

The economic impact payment will be deposited using direct deposit into the bank account specified on the filers 2019 or 2018 return.

In the event that the filer did not elect to use direct deposit for their 2019 or 2018 return a check will be mailed to their address of record. The Treasury department is planning to develop a web-based portal for individuals to provide their banking information to the IRS so that they may receive payments immediately as opposed to checks in the mail.

If you have yet to file your 2018 or 2019 tax return you can still do so. The deadline for tax filing for 2019 has been extended an additional 90 days to July 15th, 2020, for further information on this extension you can read NBSB’s “Tax filing and IRA Contribution Deadline, 90-Day Extension” article. The IRS urges you to file as soon as you can, in order to receive an economic impact payment as quickly as possible.

 

Be Aware of Stimulus Check Scams

It is very important to be wary of emails, text, calls, or other correspondence relating to your COVID-19 government stimulus check. Any emails, texts, or calls are not legitimate. They might promise faster delivery or ask to verify personal or banking information – the government will NOT do this. To learn about other COVID-19 scams to look out for and how to report them you can read NBSB’s “North Brookfield Savings Bank’s COVID-19 Scams & Fraud Awareness” article.