Monica Herndon / Philadelphia Inquirer
Sales tax revenues will slump because businesses are closed and families are cutting back on spending. The coronavirus’ effect on business has also led thousands to file for unemployment.
The United States Treasury Department and the Internal Revenue Service have released details regarding the stimulus checks or payments that will go to millions of Americans during the coronavirus pandemic.
A document explaining how it will work on the IRS website says that most payments will go out in three weeks and it will happen automatically, meaning you don’t have to call or write to earn what you’re owed. That said, “some seniors and others who typically do not file returns will need to submit a simple tax return to receive the stimulus payment,” the IRS says.
Here’s what else you need to know:
Does my income make me eligible?
First, note that if you didn’t yet file your 2019 taxes, then your 2018 return will be used.
Now, for the important part: Here, verbatim, is what the IRS says:
“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.”
You can find your adjusted gross income on line 7 of your 2018 tax return or line 8b of your 2019 return.
“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,” the IRS writes.
What if I don’t file a tax return?
The IRS says:
“IRS.gov/coronavirus will soon provide information instructing people in these groups on how to file a 2019 tax return with simple, but necessary, information including their filing status, number of dependents and direct deposit bank account information.”
How will I get it?
Those eligible for a payment will receive it either via direct deposit to the bank account they have set up with the IRS. If not, a paper check will come to the address you have on file with the IRS.
There is also a web-portal being developed for citizens to enter their banking information online to receive a direct deposit.
What if I have additional questions?
The federal government is directing citizens to this website: https://www.irs.gov/newsroom/economic-impact-payments-what-you-need-to-know