As part of the CARES Act, some taxpayers will get a payment from the federal government. This money is called an “economic impact payment.”
Who is eligible?
People who made under $75,000/year ($150,000 for a married couple) will get the full payment.
The full payment is $1200 for an individual and $2,400 for married couples.
Parents will get $500 for each child they claim as a dependent.
People who made under $99,000/year ($198,000 for a married couple) will get a partial payment.
Who is not eligible?
People who made over $99,000/year ($198,000 for married couples) will not get a payment.
If someone else claimed you as a dependent on their taxes (like college students), you cannot get a payment.
How can I get the money?
If you filed your 2019 or 2018 income taxes, you probably do not have to do anything to get your payment. The IRS announced on March 30, 2020 that payments would begin in the next 3 weeks.
If you had your federal tax return direct deposited, your payment will also be made by direct deposit to that same bank account.
If you the IRS does not have your direct deposit information:
Your payment will be mailed to you, or
You will be able to go online and give the IRS your bank information in the next few weeks. Visit the IRS website for up-to-date information.
If you get Social Security, Railroad Retirement, VA, SSDI or SSI benefits, you do not have to do anything to get your payment. Your money will be directly deposited.
However, if you have a child under 17, you will need to go to the IRS website and provide information about your dependents in order to get the extra $500 for each child. YOU MUST DO THIS BY WEDNESDAY, APRIL 22nd before noon Eastern time.
If you did not file a tax return in 2018 or 2019 and do not get Social Security, Railroad Retirement, VA, SSDI or SSI benefits, you will have to file a tax return to get an economic impact payment.
If you usually do not have to file a tax return, you will need to go to the IRS website and file a simple 2019 tax return. You may not typically file a return if you earned less than $12,200 in 2019.
If I need to file a simple tax return or enter information about my dependents, where do I go?
You need to provide the IRS with your payment information in order to get your stimulus money if you:
Did not file a 2018 or 2019 federal income tax return because your income was under $12,200 (or $24,000 for married couples).
Were not required to file a 2019 or 2019 federal income tax for other reasons, or
Get Social Security retirement, SSDI, SSI , VA or Railroad Retirement benefits and you have a child under 17, you will need to provide additional information to the IRS to get the stimulus money for your dependents. YOU MUST DO THIS BY WEDNESDAY, APRIL 22nd before noon Eastern time.
Information You will Need to Provide
Full name, current mailing address and an email address
Date of birth and valid Social Security number
Bank account number, type and routing number, if you have one
Identity Protection Personal Identification Number (IP PIN) you received from the IRS earlier this year, if you have one
Driver’s license or state-issued ID, if you have one
For each qualifying child: name, Social Security number or Adoption Taxpayer Identification Number and their relationship to you or your spouse
What to Expect
Follow these steps in order to provide your information:
Create an account by providing your email address and phone number; and establishing a user ID and password.
You will be directed to a screen where you will input your filing status (Single or Married filing jointly) and personal information.
Note: Make sure you have a valid Social Security number for you (and your spouse if you were married at the end of 2019) unless you are filing “Married Filing Jointly” with a 2019 member of the military. Make sure you have a valid Social Security number or Adoption Taxpayer Identification Number for each dependent you want to claim for the Economic Impact Payment.
Check the “box” if someone can claim you as a dependent or your spouse as a dependent.
Complete your bank information (otherwise we will send you a check).
You will be directed to another screen where you will enter personal information to verify yourself. Simply follow the instructions. You will need your driver’s license (or state-issued ID) information. If you don’t have one, leave it blank.
You will receive an e-mail from Customer Service at Free File Fillable Forms that either acknowledges you have successfully submitted your information, or that tells you there is a problem and how to correct it. Free File Fillable forms will use the information to automatically complete a Form 1040 and transmit it to the IRS to compute and send you a payment.
Can this money be garnished?
Possibly. If there is a legal judgment against you or a garnishment order on your bank account, you may want to get your payment as a check rather than a direct deposit. But, getting your money in check form will most likely delay your payment.
Can I get unemployment if I get an economic impact payment?
Yes. You can do both. The economic impact payment is separate from unemployment benefits. If your work is affected by Covid-19, you should apply for unemployment.