FAQ: Economic Impact Payments

The coronavirus outbreak continues to impact us all. Many workers and families are facing financial hardship. Thanks to the CARES Act, which I supported in the House, direct relief is on its way through an Economic Impact Payment, or a one-time tax rebate check. While some Americans have already received their payment, I know there are still many who are waiting to receive theirs.

That being said, I want to share some frequently asked questions about payments, courtesy of the House Ways and Means Committee:

Am I eligible to receive an Economic Impact Payment?

Any person who has a valid Social Security number (SSN), is not considered a dependent of someone else, and whose adjusted gross income (AGI) does not exceed certain thresholds (see below), is eligible to receive the credit. Workers, those receiving welfare benefits, Social Security beneficiaries, and others are all eligible. Spouses of military members are eligible without a SSN.

Non-filers can also receive a check: Individuals can use the simple form provided on IRS.gov here or can also use the forms available from private sector tax preparers via the IRS Free File Program, which is accessible here. Additionally, some private sector tax preparers are providing the simple form for free through their regular commercial products.

How much money will I receive?

The full credit amount ($1,200 individuals, $2,400 couples, $500 for children) is available for individuals with an AGI at or below $75,000 ($112,500 for heads of household), and couples with an AGI at or below $150,000. If you have children 17 years old or younger, you will receive an additional $500 per child.

Your tax rebate amount will be reduced by $5 for each $100 your adjusted gross income exceeds the above thresholds.

This means:

  • An individual without children will not receive any rebate if their AGI exceeds $99,000,

  • A couple without children will not receive any rebate if their AGI exceeds $198,000, and

  • A family of four will not receive any rebate if their AGI exceeds $218,000.


How can I check the status of my payment?

Last week, the IRS formally launched the "Get My Payment" web portal which you can use to check on the status of your Economic Impact Payment date and update direct deposit information.

If you have any issues with the portal, you can find FAQs about the Get My Payment tool here.

Do people with direct deposit get their payment faster?

Yes. Many Americans filed tax returns in 2018 or 2019 and provided direct deposit information. Those taxpayers do not need to take any action.

What if the IRS does not have my direct deposit information?

If the IRS does not have your bank information to send it via direct deposit, you will receive a check in the mail, which can take longer. If you wish to receive it sooner, you can provide the IRS with your direct deposit information by filing your 2019 taxes electronically if you have not done so already. Please note that should you choose to file your 2019 taxes electronically, they will only send via direct deposit if they have not already processed your Economic Impact Payment via check.

If the IRS doesn’t have your direct deposit information from either your 2018 or 2019 return – and they haven’t yet sent your payment – IRS has an online tool where you can provide your direct deposit information which will allow many to receive payments more quickly: https://www.irs.gov/coronavirus/get-my-payment.

The agency responsible for printing paper checks can only send out 5 million per week, and estimates show that 150-170 million taxpayers may be eligible. About 60 million payments to Americans will be made through direct deposit in mid-April, based on information that individuals made in their 2018-2019 tax returns. This also includes SSA beneficiaries whose federal tax returns included direct deposit information.

In what order is the IRS processing payments?

The checks will be issued in reverse “adjusted gross income” order—starting with people with the lowest income first.

What type of eligible individuals will be in each batch of weekly Economic Impact Payments?

  1. Newly filed returns for 2019;

  2. Returns perfected from the IRS error resolution system;

  3. Non-filers who fill out the newly available simple form;

  4. Taxpayers who provide updated direct deposit information;

  5. Paper checks for people with no bank information (paper checks started going out this week)


Are the rebate checks considered taxable income?

The credit is not taxable, consistent with other refundable tax credits.

Will the rebate check affect my eligibility for federal programs, like Supplemental Security Income?

No, the rebate is considered a tax refund and is not counted towards eligibility for federal programs for both income or asset test purposes.

Could my rebate check be offset by any outstanding money owed to the government?

The rebate checks are not subject to the majority of offsets, including student debt and state debts. The only administrative offset that will be enforced applies to those who have past due child support payments that the states have reported to the Treasury Department.

>> As a reminder, the deadline to file your taxes has been moved to July 15th << 

Additionally, here are some resources where you can find up-to-date information regarding the coronavirus:

If you have any questions or need assistance, please do not hesitate to contact my office. Together we will get through these unsteady times.


Sincerely,
 

Rick Allen
Member of Congress
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