|FAQs: Economic Impact Payments|
Now that the CARES Act has been approved by Congress and signed into law, this legislation will begin to disperse economic impact payments to Southwest Washington residents.
I’ve gotten questions about how these payments will be dispersed, who is qualified to receive them, and when they will begin to arrive. I’m going to help answer some of these frequently asked questions below.
Q: Who is eligible for the economic impact payment?
Tax filers who meet the following criteria will receive a payment:
– Have a valid Social Security number;
– Are not dependents of someone else;
– Meet the income eligibility requirements. More information on those below.
Income eligibility requirements: Tax filers with adjusted gross incomes up to $75,000 for individuals and up to $150,000 for married couples filing joint returns will receive the full payment. The payment is reduced by $5 for each $100 above the $75,000/$150,000 thresholds. Single filers with income exceeding $99,000 and $198,000 for joint filers with no children are not eligible.
Q: How much money will the economic impact payments be?
Eligible taxpayers who filed tax returns for either 2019 or 2018 will automatically receive an economic impact payment of up to $1,200 for individuals and $2,400 for married couples. Parents also receive $500 for each qualifying child.
Q: How will the IRS know where to send my payment?
The vast majority of people do not need to take any action. The IRS will calculate and automatically send the economic impact payment to those eligible.
For people who have already filed their 2019 tax returns, the IRS will use this information to calculate the payment amount. For those who have not yet filed their return for 2019, the IRS will use information from their 2018 tax filing to calculate the payment. The economic impact payment will be deposited directly into the same banking account reflected on the return filed.
Q: The IRS does not have my direct deposit information. What can I do?
In the coming weeks, Treasury plans to develop a web-based portal for individuals to provide their banking information to the IRS online, so that individuals can receive payments immediately as opposed to checks in the mail. When that portal becomes available, I will be sure to update you.
Q: I am not typically required to file a tax return. Can I still receive my payment?
Yes. The IRS will use the information on the Form SSA-1099 or Form RRB-1099 to generate Economic Impact Payments to recipients of benefits reflected in the Form SSA-1099 or Form RRB-1099 who are not required to file a tax return and did not file a return for 2018 or 2019. This includes seniors citizens, Social Security recipients and railroad retirees who are not otherwise required to file a tax return.
Since the IRS would not have information regarding any dependents for these people, each person would receive $1,200 per person, without the additional amount for any dependents at this time.
Q: I rely on means-tested programs like SNAP and federal housing assistance – will receiving an economic impact payment affect my eligibility?
No. These funds are not considered taxable income so they will not impact your ability for means-tested programs.Q: Do I have to pay income taxes on the amount of my payment?
Q: When can I expect my payment?
Payments will begin in the next three weeks.
Q: Where can I get more information?
The IRS will post all key information on IRS.gov/coronavirus as soon as it becomes available.
If you have additional questions, concerns, or comments, please contact me here.
I’m also continuing to update my COVID-dedicated web page, JHB.house.gov/coronavirus, with the latest information on unemployment pay, assistance for small businesses, official CDC guidelines and more.
I’m also posting information and resources on my Facebook, Twitter & Instagram page.
Please stay safe and healthy, and let me know how I can be of assistance to you.
Jaime Herrera Beutler
Member of Congress