Economic Impact Payments

The IRS has added phone operators to answer questions about Economic Impact Payments. If your questions are answered below, I encourage you to give them a call.

Phone: 1(800) 919-9835

What is it?

$1,200 advanced 2020 refundable tax credit for individuals, $2,400 for joint filers, with the addition of $500 per child

Who gets it?

To be eligible, you must have one of the following:

  • Work-eligible Social Security Number (SSN), or
  • Adopted child may use their Adoption Taxpayer Identification Number (ATIN)
  • Social Security recipients will not need to file a tax return in order to be eligible for the rebate. They will receive it automatically.

Note: Spouses of Active Military Members do not need to provide SSN.

Individuals:

Full refund given up to $75,000 of adjusted gross income, then phases out at $5 per $100 over $75,000.

At $99,000, an individual (with no child) does not receive a credit; increase the limit by $10,000 per child.

Heads of Household:

Full refund given up to $112,500 of adjusted gross income, then phases out at $5 per $100 over $112,500.

At $136,500, the head of household (with no child) does not receive a credit; increase that limit by $10,000 per child.

Joint Filers:

Full refund given up to $150,000 of adjusted gross income, then phases out at $5 per $100 over $150,000.

At $198,000, neither of the joint filers (with no child) would receive a credit; increase that limit by $10,000 per child.

How will they get it?

The Department of Treasury will be making this payment using the same method established for refunds – typically a direct deposit, or check in the mail.

If the individual has not established a refund account, then Treasury may use the same account identified for their Social Security benefits.

If the individual has not filed taxes, and does not receive Social Security – but still meets the qualifications for the rebate, then our office would recommend they file their 2019 taxes as soon as possible.

The Treasury Department and the Internal Revenue Service today launched a new web tool allowing quick registration for Economic Impact Payments for those who don't normally file a tax return. The Non-filer Tool provides a free and easy option designed for people who don't have a return filing obligation, including those with too little income to file.

The feature is available only on IRS.gov, and users should look for Non-filers: Enter Payment Info Here to take them directly to the tool.

When will they get it?

The law requires that these payments be made as expediently as possible. Treasury has indicated they should be able to make the payments within three weeks for those that filed their 2019 taxes and have authorized the use of direct deposit.

Frequently Asked Questions and Special Notes about the Economic Impact Payment

  1. Is this taxable income?
    • No. It will appear on your tax forms as a credit, much like other deductions that you take.
  2. Do I still get this rebate, even if I have no income (or my income is entirely from non-taxable benefits, like Social Security, the Earned Income Tax Credit, or the Child Tax Credit)?
    • Yes. You (an individual) remain eligible for this payment as long as you make less than $99,000, have a Social Security Number, and are not a dependent on someone else's taxes.
  3. What if I haven't filed taxes in 2018 or 2019?
    • You are still eligible to receive this funding. The Treasury has also been directed to use Social Security information to directly pay out the Economic Impact Payment, when possible. However, the most expedient way to receive this money will be to file your 2019 taxes and authorize the direct deposit of any refund into your checking account.
  4. How will I know if I have received the Recovery Rebate?
    • Within 15 days of sending the payment, Treasury is required to send you a notification that the payment has been made.
  5. If this is a 2020 refundable tax credit, could I owe the government money if I made $70,000 in 2019, and $100,000 in 2020?
    • We are awaiting clarification from Treasury on this question, but: Yes. This refundable tax credit is an advanced 2020 refund – meaning the final determination for eligibility will be on your 2020 tax filing. The legislation (H.R. 748) merely authorizes Treasury to make the payments in advance, based on data collected from 2018 and 2019 tax filings.This also applies to the eligibility of child dependents.

For more information, visit IRS.gov/coronavirus.