The IRS announced on March 30 that the distribution of economic impact payments due to COVID-19 will begin in the next three weeks, with no action required for most people to receive their payment.
Some seniors and others who typically do not file tax returns will need to submit one in order to receive the stimulus payment. Eligible taxpayers who filed tax returns in 2018 or 2019 will automatically receive the payment of up to $1,200 for individuals or $2,400 for married couples. Parents also receive $500 for each qualifying child, according to a news release from the IRS.
According to the Washington Post, most college students and high school seniors will not receive payments, as children over 16 do not qualify for the aid.
Tax filers with adjusted gross income of 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 threshold.
Individuals with income exceeding $99,000 or couples exceeding $198,000 with no children are not eligible for the stimulus.
The IRS will use information from a person’s 2019 tax return to calculate the payment if they have already filed a return for 2019. For those who have not filed a 2019 return, the IRS will calculate their payment based on their 2018 return.
The IRS will deposit the stimulus payment directly into the bank account the recipient used to receive their tax return in 2018 or 2019. For those who did not provide direct deposit information in their tax returns, the Treasury Department plans to develop a web-based portal for taxpayers to provide their banking information.
Those who have not yet filed a 2018 or 2019 tax return can still file one and receive the stimulus payment. Those who are not required to file tax returns, such as low-income taxpayers, seniors, Social Security recipients, some veterans and those with disabilities will not owe tax.
The economic impact payments will remain available throughout the rest of 2020, according to the release.
The IRS will provide all key information on IRS.gov/coronavirus, according to the release.