The lastest Press release from the IRS: Economic impact payments: What you need to know
There have been a lot of questions asked about the coming payments. While we don’t have answers for everything, here is what we do know:
- The Stimulus checks will be based on 2020 tax filings. They are advance credits for the tax year, 2020.
- Because the IRS doesn’t have your 2020 tax return yet, the payment will be based on what they do have.
- Have you filed your 2019 tax return? If so, the check will be based on your 2019 numbers.
- Have you filed your 2018 tax return, but not your 2019 tax return? If so, the check will be based on your 2018 tax return.
- Have you not filed either a 2018 or a 2019 tax return? Well, now things get a little dicey. The IRS says this, “People who typically do not file a tax return will need to file a simple tax return to receive an economic impact payment.” Here is the link the IRS has setup: IRS.gov/coronavirus
- Do I make too much money? If your Adjusted Gross Income is above the threshold, the check will be reduced by $5 for each $100 over the threshold. For single folks the threshold is $75,000. For married folks the threshold is $150,000. Again, the IRS will use the most recent tax return on file for determining your eligibility, then when you file your 2020 return adjustments will be made if needed.
- How much will I get????
- $1,200 for individuals
- $2,400 for married couples
- PLUS
- Parents also receive $500 for each qualifying child. (Under 17 years old)
- When will I get my money? IRS site says 3 weeks. When we did this back in 2008 it took longer than that to get the money out…and right now the IRS is short-staffed.
Do you still have questions? Let me know, I’ll do my best to answer.
Jeff Roltgen, Tax Rescue CPA
Jeff@TaxRescueCPA.com
www.TaxRescueCPA.com
