What is the Economic Stimulus Payment?

As a result of the major impact of COVID-19, a bipartisan $2 trillion economic relief plan has been set in place by our government to offer assistance to tens of millions of American households affected by the coronavirus pandemic. Its components include stimulus payments to individuals, expanded unemployment coverage, student loan changes, different retirement account rules and much more.   The stimulus payment include the amount that qualifying individuals will receive to provide some immediate relief.

What do I need to do to receive a stimulus check?

There is nothing to do if you filed a tax return for 2018 or 2019. If you have not filed your 2018 or 2019 return the IRS recommends that you file back taxes for 2018.

How much will I receive?

The amount you are eligible to receive is determined by your Adjusted Gross Income (AGI). The IRS will look at your 2019 return first. If you have not filed a 2019 return, the IRS will use your 2018 AGI to determine eligibility.

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. 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. Parents also receive $500 for each qualifying child.

Can I receive the payment if someone else has claimed me as a dependent on their tax return? No, you can’t get a payment if someone claims you as a dependent, even if you’re an adult.

When will the stimulus payment be issued?

On March 30th the Treasury Department and the IRS announced that the distribution of payments will begin in the next 3 weeks. We will update this page once more details are available. Stimulus payments will start to phase out for single filers making more than $75,000, $112,500 for head of household filers and $150,000 for joint filers. The stimulus payments will phase out entirely at $99,000 for singles, $136,500 for head of household, and $198,000 for joint filers.

I paid for tax preparation using Santa Barbara TPG this tax season. How will I receive my Economic Impact Payment?

The IRS will issue direct deposits to taxpayers that requested a direct deposit disbursement or applied for a new debit card when they prepared their own return online. An IRS-issued check will be mailed to taxpayers that requested a check printed from their tax professional’s office, Walmart Direct2Cash or a Walmart MoneyCard issued by their tax professional.

If a payment is returned to the IRS (Ex. bank account is closed), the IRS will mail a check to the taxpayer.

In the rare event that payments are inadvertently sent to TPG, a plan is in place to help identify and expedite the return of these payments to the IRS so that the IRS can reissue payments directly to affected taxpayers as soon as possible. If we are unable to identify the payment as an Economic Impact Payment, the deposit will be processed as a federal refund, with all associated fees withheld from the deposit amount.

Will the IRS call me asking for my bank account information?

No, the IRS and other government agencies will never call asking for your Social Security Number (SSN) or banking information. Do not provide your SSN or bank account information to anyone calling you and claiming to be from the IRS or another government agency.

Will the IRS text or email me asking to verify my bank account information?

No, please beware of phishing schemes from identity thieves claiming to be the IRS or another government agency. Do not click on a link or email if you do not recognize who it is from. The IRS will never text or email you asking to provide your bank account information or verify your bank account information.

Am I required to sign up or pay a fee in order to receive a stimulus payment?

No, please beware of phishing schemes from identity thieves claiming to be the IRS or another government agency. You are not required to sign up or pay a fee in order to receive a stimulus payment.

Will I be required to complete a form to qualify for a stimulus payment?

Taxpayers are not required to complete a form, but according to the IRS website, “In the coming weeks, Treasury plans to develop a web-based portal for individuals to provide their banking information to the IRS online, so that individuals can receive payments immediately as opposed to checks in the mail.” This portal is being made available to taxpayers that did not receive a direct deposit. The IRS will provide more details as they are available.

How will the IRS know where to send my payment?

The vast majority of people do not need to take any action. The IRS will calculate and automatically send the economic impact payment to those eligible. The economic impact payment will be deposited directly into the same banking account reflected on the return filed.

The IRS does not have my direct deposit information. What can I do?

In the coming weeks, Treasury plans to develop a web-based portal for individuals to provide their banking information to the IRS online, so that individuals can receive payments immediately as opposed to checks in the mail.

I am not typically required to file a tax return. Can I still receive my payment?

Yes. The IRS will use the information on the 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. This includes senior citizens, Social Security recipients and railroad retirees who are not otherwise required to file a tax return. Since the IRS would not have information regarding any dependents for these people, each person would receive $1,200 per person, without the additional amount for any dependents at this time.

However, some people who typically do not file returns will need to submit a simple tax return to receive the stimulus payment. When more specific details become available, we will update this page.

How can I file the tax return needed to receive my economic impact payment? Contact Eagle Eye Tax Solutions at www.EagleEyeTax.com soon to receive instruction on how to file a 2018 or 2019 tax return remotely with our tax professionals.

I have not filed my tax return for 2018 or 2019. Can I still receive an economic impact payment?

Yes. The IRS urges anyone with or without a tax filing obligation who has not yet filed a tax return for 2018 or 2019 to file as soon as they can to receive an economic impact payment. Taxpayers should include direct deposit banking information on the return. Contact Eagle Eye Tax Solutions at www.EagleEyeTax.com soon to receive instruction on how to file a 2018 or 2019 tax return remotely with our tax professionals.

I receive Social Security benefits and I am not required to file a tax return. What do I need to do?   NEW UPDATE: Social Security Recipients Will Automatically Receive Economic Impact Payments. The U.S. Department of the Treasury and the Internal Revenue Service today (April 1st) announced that Social Security beneficiaries who are not typically required to file tax returns will not need to file an abbreviated tax return to receive an Economic Impact Payment. Instead, payments will be automatically deposited into their bank accounts.

I have defaulted on my DOE Student loan payment or/and have delinquent tax bill. Will I receive the stimulus payment?

The bill temporarily suspends nearly all efforts to garnish tax refunds to repay debts, including those to the I.R.S. itself. This includes defaulted student loans held by the U.S. Department of Education, and those seized federal tax refunds that were in process as of March 13, 2020 will be returned to borrowers.

The suspension will apply to involuntary debt collection efforts by the U.S. Department of Education against borrowers who are in default. The suspension will apply to involuntary debt collection efforts by the U.S. Department of Treasury against taxpayers with past due tax bills. This includes administrative wage garnishments, offsets of Social Security payments, and interceptions of federal tax refunds. The waiver may not apply to people who are behind on child support.