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The stimulus payments (Economic Impact Payments) are a very popular topic of conversation these days!
Despite being absolutely flooded with questions, we've been hesitant to send out added info since our March 19 & March 31 E-newsletters because of how quickly things are changing, and how unreliable the IRS site has proven to be for tracking payments, etc.
With that being said, below are common questions we’re receiving, as well as responses with the latest info we have.
NOTE: these stimulus payments are entirely separate from income taxes (other than eligibility being based on income). Therefore, we don’t have any interaction with, or control over these payments. The info below is just being provided to help folks navigate through these payments. Much of the info below is taken directly off the IRS.gov website.
The IRS is constantly updating its site to reflect updates as things progress. You can find that info by clicking here.
Am I eligible to receive a stimulus payment?
You must meet the following to receive the full stimulus of $1,200 for individual/head of household or $2,400 for married couples, and $500 per child under age 17:
Taxpayers will receive a reduced payment if their AGI is between:
The income figures will be based on your 2019 tax return, if you’ve filed. If you haven’t filed 2019, it will be based on your 2018 filed tax return. We do not know the specific cutoff date for when the payments were determined as far as using 2018 or 2019, if you’ve filed both years.
Eligible retirees and recipients of Social Security, Railroad Retirement, disability or veterans' benefits as well as taxpayers who do not make enough money to normally have to file a tax return will receive a payment. This also includes those who have no income, as well as those whose income comes entirely from certain benefit programs, such as Supplemental Security Income benefits.
Retirees who receive either Social Security retirement or Railroad Retirement benefits will also receive payments automatically.
Is there anything I need to do to ensure I receive the payment?
This is where things have gotten confusing over the past couple weeks. Remember, this was a massive tax bill that passed without every detail being figured in advance. Meaning, the implementation is much more difficult than the passing of the bill. While the process has certainly been far from perfect, the IRS has been doing its best to update all tools, information, etc.
With that being said, visit the following link for the most updated info on what you need to do to ensure your payment is facilitated and streamlined – click here. This link will provide a chart where you can determine action you need to take based on your specific situation.
When will I receive my stimulus payment?
There is no exact answer for this. The payments are coming in waves. We've heard of many folks receiving their payment already, and many who have not. Just because you haven’t received it, doesn’t mean there’s an issue with your payment or that you don’t qualify. It’s largely a matter of timing and how you’re receiving your payment. Mailed paper checks will take considerably longer than direct deposit. The above link can help you determine if you should be taking action to receive your payment more expeditiously.
“Status Not Available”
We understand many folks are receiving a “Status Not Available” response when checking the “Get My Payment” IRS links. The IRS has released its statement on this tool at the following link: click here. Please use this link to determine your specific situation, as we have no direct connection with these payments and the systems being implemented.
Other items of interest
The stimulus payment is not considered income and you will not owe tax on the payment. It will not reduce your refund or increase the amount you owe when you file your 2020 tax return next year. A stimulus payment also will not affect your income for purposes of determining eligibility for federal government assistant or benefit programs.
If you owe tax or have a payment agreement with the IRS or other federal/state debts, your payment will not be reduced or offset in any way (the exception is past-due child support).
We truly hope you and yours are doing well and staying safe during these challenging times.
Feel free to contact us should you have any questions.