Economic Impact Payments are a provision unrolled by the Internal Revenue Service (IRS) to offer financial relief to taxpayers affected by the coronavirus outbreak. Although the measure has been successful for the most part, there are details that are still unclear for some people. If you are among them, read on to get answers to the 5 most common questions regarding this stimulus.
How Much Could I Get?
Individual taxpayers eligible for Economic Impact Payments get $1,200, while couples filing jointly receive 2,400. Additionally, you can receive $500 extra for every qualifying child you claimed on your tax return.
Keep in mind that the amount you receive could be different than expected due to several factors. For example:
- You haven’t filed a 2019 tax return and your payment is based on your 2018 return. This may happen too if the IRS hasn’t finished processing your 2019 return.
- The qualifying child is 17 or older.
- The Economic Impact Payment was offset by past-due child support
Can I Check the Status of My Payment Online?
is the Payment Includible in My Gross Income?
No, the payment is not includible in your gross income. Therefore you will not include it in your taxable income. It won’t reduce your tax refund nor increase the amount you owe when you file your taxes next year. Also, it won’t affect your eligibility for assistance programs or federal benefits.
Do I Have to Make a Filing if I Receive Social Security or Other Benefits?
You don’t have to make a filing to get your Economic Impact Payment if you receive Social Security, railroad retirement, Social Security Disability Insurance (SSDI and SSI) or Veteran’s benefits. In that case, you’ll receive your payment the same way you normally receive your benefits.
On the other hand, People who don’t normally file, such as low-income or no income taxpayers, can use Non-Filers: Enter Payment Info tool to provide the basic information to get their Economic Impact Payments.
My Bank Details Changed Since the Last Time I Filed a Tax Return. Can I Change Them on the Website?
In order to avoid fraud, the Get my Payment tool doesn’t allow you to change your bank account details. If that information has changed since the last time you filed a tax return, then the bank will reject the payment and the IRS will send a check to the last address they have on file.
The government’s response to COVID-19 changes constantly, so it’s important to stay updated checking the IRS website and this blog. It’s also a good idea to get advice from an expert who can help you get advantage of the relief initiatives unrolled by the government.
At Meadville Tax Services we have the know-how and the drive to assist you so you can file your taxes efficiently, limiting your tax liability while staying compliant with federal tax regulations.