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Economic Impact Payments: Answers to the Latest Trending Questions

by
Steward Financial
on
5/11/2020
Economic Impact Payments: Answers to the Latest Trending Questions

Economic impact payments (EIPs, also referred to as "stimulus checks" or "recovery rebates") were a key piece of the CARES Act, a $2 trillion COVID-19 relief bill passed through Congress and signed into law at the end of March. The government is issuing the $1,200 EIPs to U.S. citizen and U.S. resident alien individuals with adjusted gross incomes below $75,000. Married couples earning under $150,000 will get $2,400. The program also pays $500 for each child under age 17.

Current figures from the IRS and Treasury estimated there will be 150 million rebate payments under the Act and that "101 million of these would have to be paid by paper check (through the mail) unless the IRS received direct deposit information for those recipients before the check was sent." 

Paper checks did not end up being as high of a proportion. As of May 8th, the IRS had sent out 128.3 million stimulus checks and already paid $218.4 billion -- which is "most of the stimulus money that's been set aside for direct payments to families and individuals across America as the coronavirus outbreak continues."

I still haven't received my stimulus check. When will I receive it?

There are three questions to ask here first: 

  1. Do you qualify for a stimulus check?
  2. Do you have direct deposit on file with the IRS?
  3. Are there any other circumstances that could be affecting your payment?

If you don't already know whether you qualify for an EIP, you can use the table below to compute what your advance payment would be based upon your 2019 or 2018 filed return and what the credit will be on your 2020 return.

1: Find your AGI on 2019 Form 1040 or 1040SR, line 8b, or on 2018 Form 1040, line 7 

2: MFS = married filing separately

So, if you qualify and had filed either your 2019 or 2018 return before the direct deposit checks were issued, you should already have the money in the bank, UNLESS:

  1. You changed bank accounts since you filed your return, which means you will be receiving your stimulus payment by check later. 
  2. You owe back child support in which case the payment will go to satisfy your back-child support. 

If you know you'll be receiving payment by check, the checks are being issued to the lowest income individuals first where the need is the greatest followed by others with increasing incomes. Here is the release schedule for the payments by check:

Others who are unsure of their payment status should use the IRS Get My Payment Tool for more information. Non-filers who believe they qualify but do not have information on file with the IRS can enter their payment info here.

How long do I have to submit my direct deposit info?

The IRS announced Friday that Americans who qualify for a recovery rebate now have until noon on Wednesday, May 13 to get their money faster by submitting their direct deposit information on the Get My Payment site.

After that deadline has passed, paper checks will be sent out. If you want your payment as early as possible, be sure to submit your direct deposit info by 12pm on 5/13.

Who has been receiving economic impact payments so far?

As we mentioned above, around 130 million recovery rebates have been sent out so far, totaling more than $200 billion. It's estimated that there are about 20 million payments that still need to be sent.

You can see the total breakdown of Economic Impact Payments by state here.

What do I do if I receive a stimulus check for someone who is deceased? Do I get to keep it?

The IRS agency added this question to their stimulus Q&A page last week: "Does someone who has died qualify for the payment?" The answer: "No."

After families started receiving stimulus checks for deceased loved ones, it was only a matter of time until official guidance was released.

Here's what to do if you're in this situation: "If the checks were sent by mail, they should be voided and mailed back to the IRS. If the payments were made via direct deposit, the taxpayer should write a check to the government and mail it in."

Are there more stimulus checks coming in the future?

TBD. The economic impact payments included in the CARES Act were a one-time deal, but some legislators are pushing for additional stimulus checks. These proposals range from another single check to recurring payments lasting through the end of the coronavirus pandemic.

Keep checking back for additional information. If any further stimulus payments are passed in the future, we will keep this blog updated.

Have other questions? This IRS Q&A page covers many of the more frequent inquiries and offers other helpful links as well. As is stated on the page, the IRS is requesting that taxpayers DO NOT call the agency with questions. The Q&A page is updated regularly, and if you have additional questions, we recommend asking your tax or financial professional.

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Steward Financial

Steward Financial

Jon Osborn is a tax preparer based in San Dimas, California. His company, Steward Financial Services, offers a broad range of tax preparation, accounting and business consulting for small businesses. He loves to work with clients who are looking for answers to complex tax and business planning issues. He has owned several small businesses and worked with over one hundred small business owners. He helps his individual and business tax clients find the best ways to spend their money in order to minimize IRS tax. Small businesses looking to grow, sell or just increase cash flow are one of Jon's specialties.

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