Coronavirus Economic Stimulus: What You Need To Know In NYC
NEW YORK CITY — In the next three weeks, most Americans are expected to start receiving payments that are part of a nearly $2 trillion economic stimulus package signed into law by President Donald Trump. The package is intended to mitigate the economic effects of the new coronavirus outbreak on Americans, small businesses and corporations.
But with so much money in the pipeline, questions remain: What is the government using to determine eligibility? Do we need to apply to receive a payment? Where will the payment go once it’s sent?
The Internal Revenue Service and U.S. Treasury released guidance this week that explains what Americans should expect and what they need to do to receive their payments. Most won’t need to do anything.
Here’s a checklist of questions and answers:
When will the money arrive?
Steven Mnuchin, the Secretary of the Treasury, said Thursday the first payments will start arriving within weeks, but will take longer if the Inland Revenue Service doesn't have your direct deposit information. Details on how to give the IRS your bank details are below. Paper checks will take a lot longer to be received.
Do I need to file a tax return to receive a stimulus payment
The answer is no in almost all cases. Originally, Social Security recipients were among those required to file a return to receive the stimulus payment. However, in response to backlash from both sides of the political aisle, the U.S. Treasury announced Wednesday that Social Security recipients are now exempt from the tax return requirement, according to The Washington Post.
The U.S. Department of the Treasury and the Internal Revenue Service announced that Social Security beneficiaries who are not typically required to file tax returns will not need to file an abbreviated tax return to receive an Economic Impact Payment. Instead, payments will be automatically deposited into their bank accounts.
“Social Security recipients who are not typically required to file a tax return do not need to take an action, and will receive their payment directly to their bank account,” said Mnuchin in a prepared statement posted on the Treasury website.
The IRS will use the information on the Form SSA-1099 and Form RRB-1099 to generate $1,200 Economic Impact Payments to Social Security recipients who did not file tax returns in 2018 or 2019. Recipients will receive these payments as a direct deposit or by paper check, just as they would normally receive their benefits, according to the IRS website.
This includes senior 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, the IRS posted on its site.
Some people who "haven’t filed tax returns for 2018 and 2019, and who aren’t Social Security recipients or railroad retirees" will have to file a “simple” tax return, according to AARP. But a simple form has not yet been defined, according to AARP.
Am I eligible for the economic stimulus payment?
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 or $2,400 for married couples. Parents also receive $500 for each qualifying child.
Tax filers with an adjusted gross income of up to $75,000 for individuals, and $150,000 for married couples filing joint returns, will receive the full payment. For filers with income above those amounts, the payment amount is reduced by $5 for each $100 above the thresholds.
Single filers with income exceeding $99,000 and $198,000 for joint filers with no children are not eligible to receive the payment.
Social Security recipients and railroad retirees who are otherwise not required to file a tax return are also eligible and will not be required to file a return.
Do I need to let the IRS know where to send payment?
No. For people who have already filed their 2019 tax returns, the IRS will use this information to calculate the payment amount. For those who haven’t filed a 2019 return, 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.
What if the IRS doesn’t have my direct deposit information?
In the coming weeks, the U.S. Treasury plans to roll out a web-based portal for people to provide their banking information online.
If I still need to file a tax return, how long will stimulus payments be available?
Payments will be available throughout the rest of 2020, according to the IRS.
Is there a place I can find more information?
The IRS posts all key information on IRS.gov/coronavirus as soon as it becomes available.
Reported by Dan Hampton/Patch
This article originally appeared on the New York City Patch
