As the U.S. is shut down due to the spread of COVID-19, many Americans are wondering how to make bill payments this month. And promised stimulus payments are part of the answer to that problem. The IRS just released more information about payments for retirees, Social Security recipients, direct deposits if you have not filed 2018 or 2019 taxes, and more.
The IRS advises, for most Americans who filed a 2019 tax return and included their bank’s direct deposit information, no further action is needed. They will calculate their amount, including any dependency additions and automatically transfer the funds. Here is more updated information about economic stimulus checks…
I’m on Social Security will I receive a stimulus check?
Social Security recipients will automatically receive stimulus payments. Even those who aren’t typically required to file a tax return will receive payment directly to their bank account. Recipients would not have to file an abbreviated tax return as the IRS will use the information from their Form SSA-1099 and Form RRB-1099 to send their $1,200 payment via direct deposit or by mail.
Who is eligible for the economic impact payment?
How will the IRS know where to send my payment?
For most American tax filers, no further action is necessary as the IRS has either their banking information for direct deposit from either their 2019 or 2018 returns. They are aiming for faster direct deposits for the majority of recipients… see why below!
The IRS does not have my direct deposit information. What can I do?
In the coming weeks, the U.S. Dept. of Treasury plans to develop a website for individuals to provide their banking information to the IRS online. This is their effort to pay individuals immediately rather than mailed checks. (Please watch out for scams that may emerge from this!)
Update: the IRS has released one of two tools for you to give them your bank direct deposit information. The first tool is for non-filers which is available now! The second called Get My Payment is available now.
I am not typically required to file a tax return. Can I still receive my payment?
Yes. For senior citizens, Social Security recipients and railroad retirees who are not otherwise required to file a tax return. The IRS will use the information on forms Form SSA-1099 or Form RRB-1099 for those who are not and did not file a 2019 or 2018 tax return.
I have a tax filing obligation but have not filed my tax return for 2018 or 2019. Can I still receive an economic impact payment?
Yes. If you owe back taxes and did not file in 2019 or 2018 the IRS urges you to file anyway and include your banking direct deposit information. However, my personal opinion is to also advise to wait until they launch the Treasury website to collect banking information. See a few questions above for more.
I need to file a tax return. How long are the economic impact payments available?
Don’t worry, the IRS says the funds will be available all 2020. Therefore, if you did not receive in the initial batch of payments, you can seek tax help to get your stimulus payment.
Source: IRS & U.S. Dept of Treasury
Have any other questions not addressed here… such as will you receive a stimulus check if you owe child support? Ask other questions in the comments below!
