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Economic Impact Payment Questions and Answers

Economic Impact Payment Questions and Answers

It goes by many names, the Corona Relief Act, the Cares Act and Economic Impact Payments, no matter what name you may call it, this $2 trillion aid package is starting to find its way in to most Americans bank accounts.  We would like to break down some facts and frequently ask questions regarding the Economic Impact Payment.

Why am I having trouble accessing mobile banking?

With the payments starting to reach peoples accounts, most mobile app providers are experiencing an overload of traffic, thus causing delayed user access.  If you are experiencing this problem, we ask that you redirect to our website for Online Banking.

How much am I getting?

U.S. citizens and permanent residents are to receive payments of $1,200 for individuals and $2,400 for married couples with additional payments of $500 per dependent child under the age of 17.  There are, however, income limits. Payments are reduced for individuals with incomes that fall between $75,000 and $99,000 and for couples with combined incomes between $150,000 and $198,000. Those with incomes above those levels or a young adult age 17 or older, who is claimed as a dependent on an income tax return, will not receive a stimulus check.

Do I need to do anything to get my Economic Impact Payment?

The IRS is asking that you please do not call. Most people won’t need to take any action.  Most eligible U.S. taxpayers will automatically receive their Economic Impact Payments including individuals who filed a federal income tax return for 2018 or 2019, individuals who receive Social Security Retirement, disability (SSDI) or Survivor benefits, and individuals who receive Railroad Retirement benefits.

How will I receive my Economic Impact Payment?

If you had a bank account listed on the tax return for deposit of your tax refund, the Economic Impact Payment will be deposited directly into the same account.  If you don’t have an account linked to your return, meaning you currently receive tax refund money in the form of a check, the IRS reports that the first wave of paper checks will be cut this weekend and mailed on Monday. 

When will I receive my check or Direct Deposit?

The Treasury Department has said it hopes to get most of the direct-deposited money out within two weeks. For those who receive the money as a check, Congress reported it might take until August to mail out all of the checks. To check your payment status the IRS has set up an easy way to check online at https://www.irs.gov/coronavirus/economic-impact-payments.  If you filed taxes in 2018 or 2019, to check the status of your Economic Impact Payment you may need your 2019 tax return, if filed, in addition to your 2018 return. With this, you will be able to get information regarding your payment status, payment type, and whether the IRS needs more information from you, including bank account information.

Will I receive an Economic Impact Payment if I do not file a tax return?

Non- Filers who did not file a 2018 or 2019 federal income tax return because their gross income was under $12,200 for individuals or $24,400 for married couples or people who had no income, or weren’t required to file a 2018 or 2019 federal income tax return for other reasons can enter their payment info at https://www.irs.gov/coronavirus/economic-impact-payments.  You will need to provide, your full name, current mailing address, an email address, date of birth, a valid Social Security number, bank account and routing number if you have one, Identity Protection Personal Identification Number (IP PIN) you received from the IRS earlier this year, if you have one, and Driver’s license or state-issued ID, if you have one. For each qualifying child you will need to provide their name, Social Security number or Adoption Taxpayer Identification Number, and their relationship to you or your spouse.  For more information please visit https://www.irs.gov/coronavirus/economic-impact-payments.

Will I have to pay the Economic Impact Payment back on my 2020 Taxes?

The answer is no.  It is not considered taxable income and it won’t have to be repaid.  According to the Tax Foundation, no one will have to pay the money back no matter what happens with your 2020 tax return.  The payment is structured as a credit on your 2020 taxes and the money received in 2020 is an advance on that credit.  Not only will you not have to repay the Economic Impact Payment, some people may receive more money next year when they file their taxes. The Tax Foundations says, if you receive a reduced check or nothing this year because your income is too high, and then your income drops in 2020, you could receive an additional credit when you file your 2020 return next year.

 

Information to help you navigate other questions you may have can be found at https://www.irs.gov/coronavirus-tax-relief-and-economic-impact-payments, as well as https://taxfoundation.org/federal-coronavirus-relief-bill-cares-act/.

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