The IRS began direct depositing stimulus checks on Saturday, April 11, as part of the first wave of payments to go out under the Coronavirus Aid, Recovery, and Economic Security (CARES) Act. The IRS processed 80 million more direct deposits this week.
Additional payments will continue to go out in waves in the coming weeks. The government is prioritizing the first few waves of payments toward low-income Americans and Social Security beneficiaries.
Individuals who receive Social Security retirement or disability benefits, or who receive Railroad Retirement benefits but didn’t file a return for 2019 or 2018 will automatically receive a payment in the “near future,” according to the IRS.
The IRS is expected to start sending paper checks on April 24.
Let’s dig a little deeper to better understand the process, what may be holding your payment up, and more importantly what you can do to potentially speed things up.
Here are some common questions we will cover:
- Do I qualify for an economic impact payment?
- Will I receive my check automatically?
- What happens if I didn’t file my taxes for 2018 or 2019?
- What if I normally don’t file a tax return?
- What if I receive Social Security or Railroad Retirement Benefits but don’t file a tax return?
- How can I provide my direct deposit information to speed up my payment
- What if I moved since I filed my last tax return?
- How can I check the status of my payment?
1. Do I Qualify for an Economic Impact Payment?
Qualifying individuals include U.S. citizens or resident aliens who:
- Have a valid Social Security number,
- Could not be claimed as a dependent of another taxpayer, and
- Had adjusted gross income under certain limits.
You likely won’t qualify for an Economic Impact Payment if any of the following apply:
- Your adjusted gross income is greater than
- $99,000 if your filing status was single or married filing separately
- $136,500 for head of household
- $198,000 if your filing status was married filing jointly
- You can be claimed as a dependent on someone else’s return. For example, this would include a child, student or older dependent who can be claimed on a parent’s return.
- You do not have a valid Social Security number.
- You are a nonresident alien.
- You filed Form 1040-NR or Form 1040NR-EZ, Form 1040-PR or Form 1040-SS for 2019.
2. Will I receive my payment automatically?
Most eligible U.S. taxpayers will automatically receive their Economic Impact Payments including:
- Individuals who filed a federal income tax for 2018 or 2019
- Individuals who receive Social Security retirement, disability (SSDI), or survivor benefits
- Individuals who receive Railroad Retirement benefits
3. What if I haven’t filed my 2018 or 2019 income tax returns yet?
The IRS urges anyone with 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.
Keep in mind that the IRS has extended the deadline for filing your 2019 taxes until July 15, 2020, and you will have until the end of 2020 to claim your money.
4. What if I don’t normally file taxes?
To receive your payment quicker, you can use the IRS’s “Non-Filers: Enter Your Payment Info Here” application to provide simple information so you can get your payment. Enter your bank account information so that your payment will be directly deposited in your bank account.
You should use this application if:
- You did not file a 2018 or 2019 federal income tax return because your gross income was under $12,200 ($24,400 for married couples). This includes people who had no income. Or
- You weren’t required to file a 2018 or 2019 federal income tax return for other reasons
If you receive these benefits, we already have your information and you will receive $1,200. Do not use this application if you receive:
- Social Security retirement, disability (SSDI), or survivor benefits
- Railroad Retirement and Survivor Benefits
Special note: People in these groups who have qualifying children under age 17 can use this application to claim the $500 payment per child.
5. What if I receive Social Security or Railroad Retirement Benefits but don’t file a tax return?
Most Social Security (including SSDI) and Railroad Retirement recipients who are not typically required to file a tax return do not need to take action.
The IRS will use the information from Forms SSA-1099 and RRB-1099 to generate the payment.
Recipients will receive $1,200 payments automatically as a direct deposit or via mail, just as they would normally receive their benefits.
6. How can I provide my direct deposit information to the IRS so I don’t have to wait for a paper check?
The IRS is building a tool called “Get My Payment,” expected to be available mid-April. Once launched you will be able to enter your bank account information for direct deposit. if the IRS does not have it already, and you have not received your payment yet
7. What if I moved since I filed my taxes?
If you provided your bank account information when you filed your taxes, the IRS will directly deposit your money into this account. They won’t need your updated address.
Check payment: If you moved since you last filed, let the IRS know your new mailing address.
8. How can I check the status of my payment?
The IRS has established an online tool that is now live to allow you to check the status of your payment and confirm your payment type, either direct deposit or check. If you would rather receive a direct deposit, which will be faster, you can provide your banking information there as well.
So, there you have it. If you haven’t yet received your payment, you now have a better idea what the hold-up may be, and what steps you can take to help speed it up if you are entitled to a check, but haven’t yet received it.
The information provided in this article is being provided strictly as a courtesy and is intended for informational purposes only and should not be construed or used as tax, financial, investment or other professional advice. Finivi Inc. makes no representation as to the completeness or accuracy of information provided. If you have questions regarding your financial situation, you should consult your tax professional, financial planner or investment advisor.