Direct Cash Payments, the IRS, and COVID-19
CHECK THE STATUS OF YOUR DIRECT CASH PAYMENT:
Visit the 'Get My Payment' portal to get an update on your payment status, type, and whether the IRS requires any additional information from you.
For Most People:
For those who filed their federal taxes in 2018 or 2019, those with Social Security retirement, disability (SSDI), or survivor benefits, and those who receive Railroad Retirement benefits, no additional action is needed to receive your economic impact payment. You will automatically receive your direct cash payment either by direct deposit or by mail.
For individuals who have not filed their federal taxes for 2018 or 2019, who do not receive Social Security retirement, disability (SSDI), or survivor benefits, or who do not receive Railroad Retirement benefits, visit the new IRS portal to enter your information so that you can receive your direct cash payment provided by the CARES Act.
For SSI Beneficiaries:
For SSI beneficiaries who have their regular monthly payments managed for them by a 'representative payee' will begin to receive their direct cash payment from the IRS in late May. Learn more, HERE.
Direct Cash Payment FAQ:
WHY DID CONGRESS INCLUDE PAID REBATES TO AMERICANS IN THE CARES ACT?
The public health and economic consequences of COVID-19 are significant. These rebates combined with other resources, such as unemployment insurance and forgivable loans to employers who keep their workers on the payroll, will help Americans get by during this public health crisis.
WHEN WILL THE REBATES BE DISTRIBUTED?
The Internal Revenue Service (IRS) will work to deliver rebates quickly, beginning in the next three weeks starting March 30, in the form of advance payments. For people who filed a federal income tax return in 2018 or 2019, payment processing will be based on payment or address information already on file with the IRS. Electronic distributions will be automatic to an account the payee authorized January 1, 2018 or later.
WHAT IF MY INFORMATION HAS CHANGED?
The IRS will determine payment delivery systems for everyone entitled to rebates. The best way to ensure you receive a speedy rebate is to file your 2019 tax return, if able, so the IRS has your most recent information.
HOW LARGE ARE THE REBATES?
The amount of the rebate depends on family size. The payment is $1,200 for each adult individual ($2,400 for joint filers), and $500 per qualifying child under 17 years old. Rebates are reduced by $5 for every $100 of income to the extent a taxpayer’s income exceeds $150,000 for joint filers, $112,500 for a head of household filer, and $75,000 for single filers.
DO REBATES NEED TO BE REPAID?
No, rebates do not need to be repaid. If an individual experienced an income loss in 2020 or if they have an increase in family size, they may be able to claim an additional credit of the difference when the individual files their 2020 tax federal income tax return in 2021.
HOW WILL REBATES BE DELIVERED?
It depends. Rebates will be delivered automatically—by the IRS—to most Americans who file individual federal income tax returns. When available, electronic direct deposit will be used in place of mailing a physical check.
SOME INDIVIDUALS, INCLUDING SENIORS RECEIVING SOCIAL SECURITY, DON'T NEED TO FILE A TAX RETURN. ARE NON-FILERS ELIGIBLE FOR REBATES?
Yes. There is no earned income requirement to be eligible for a rebate, but some non-filers may need to take additional steps to receive their rebates.
The Social Security Administration (SSA) will share information for Social Security (Old-Age, Survivors, and Disability Insurance) beneficiaries with the IRS to help ensure these beneficiaries receive an automatic advance payment. So no extra steps should need to be taken.
Those who rely only on Supplement Security Income (SSI) may still need to file with the IRS. The IRS will conduct a public awareness campaign to reach other non-filers and provide them with information on how they can access rebates. Continue to check the IRS coronavirus landing page for the most up to date information.
WILL THE REBATES AFFECT MY ELIGIBILITY FOR FEDERAL INCOME-TARGETED PROGRAMS?
No, the rebate is considered a tax refund and is not counted towards eligibility for federal programs.
WHAT IDENTIFICATION REQUIREMENTS APPLY TO RECEIVE REBATES?
Taxpayers must have Social Security Numbers for themselves and their qualifying children in order to receive rebates.
Any of these provisions may be updated as the IRS continues to establish a stimulus paycheck system.
For the most updated information, please visit HTTPS://WWW.IRS.GOV/CORONAVIRUS.
Regarding Taxes and IRS:
The new deadline to file 2019 federal income tax returns has been extended from April 15, 2020, to July 15, 2020. This means taxpayers can defer tax payments until July 15 without penalties and interest, regardless of the amount owed. This deferment applies to all individuals, trusts and estates, corporations and other non-corporate tax filers as well as those who pay self-employment tax. Taxpayers don't need to file any additional forms or call the IRS to qualify for this automatic filing and payment relief. Individual taxpayers who need additional time to file beyond the July 15 deadline can request a filing extension by filing Form 4868 through their tax professional, tax software or using the Free File link on IRS.gov. If you have other questions about filing and payment deadlines, you can visit the IRS Questions and Answers page or by visiting the IRS Coronavirus Tax Relief Info page.