Starting the week of April 13, the U.S government will begin sending out direct payments to help individuals amid the coronavirus pandemic, starting with the 60 million or so Americans for whom the Internal Revenue Service already has direct deposit information on file, according to Rep. Steven Horsford’s office.
Horsford said the timeline was secured after some prying by him and his House Ways and Means Committee colleagues.
“I know there is still work to be done to provide American families with economic relief and certainty. Today, we are able to share a plan on the direct payments that will go out to Nevadans in the coming weeks. This is the first step in providing relief to workers, families and small businesses.” Horsford said.
According to information provided to the members of Congress from the IRS and the Treasury Department, the IRS will use your 2019 tax return, if you’ve already filed it, or your 2018 return to calculate the amount of your payment. The payments would not be subject to tax, and those who owe back taxes will still get the payouts.
Individuals are due up to $1,200 and couples will receive up to $2,400 — plus $500 per child. But payments start phasing out for individuals with adjusted gross incomes of more than $75,000. The amount will then be reduced by $5 for every additional $100 of adjusted gross income up to $150,000 for a joint filer, $112,500 for a head of household filer, and $75,000 for single filers.
During the first week of May, the IRS will begin sending paper checks to individuals. About 5 million paper checks will be sent per week, which could take up to 20 weeks to get all the checks out.
Paper checks will go out to people with the lowest income first and be sent to roughly 100 million Americans who do not have direct deposit information on file with the IRS.
The IRS expects to create a portal by the end of April/early May that will allow taxpayers to find out the status of their rebate payment and update direct deposit information. The agency is also encouraging taxpayers to file their 2019 returns to the maximum extent possible.
Social Security recipients will not have to file a tax return in order to receive the economic stimulus payments the government is preparing to send out and will receive their rebate just as they would their Social Security benefits.
For other taxpayers who do not file returns, the IRS expects to release a “simple tax return” that will contain only a few questions, including name, social security number, dependents, and deposit information. There also will be future IRS guidance on this “simple tax return” when it’s released.
As taxpayers file their 2019 returns electronically, the IRS will post updated tax information weekly to its files and then send this information to another agency that will issue weekly payments.