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2020 Economic Stimulus Package – Facts & Info

As most Americans have learned, the deadline for filing their 2019 tax returns has been extended until July 15, 2020 and our nation’s leaders have approved an economic stimulus package to lessen the financial impact stemming from the pandemic. In the next three months, starting April 1, economic impact payments will automatically be distributed to millions of households. 

 

 Here is what’s important to know.

  • The IRS will use information from your 2019 tax return to determine your eligibility, amount of your economic impact payment and obtain the information needed to transfer your payment to your checking account by way of direct deposit (or send through the mail for those without bank accounts).
  • If you have not yet filed your 2019 tax return, the IRS will us your 2018 tax filing to calculate the payment. 
  • The payment will be deposited using direct deposit into the banking account reflected on either the 2019 or 2018 tax return they have on file, or issued by check through the mail.
  • You still have time to file your 2018 or 2019 tax return.

 

Economic Impact Payments

The stimulus checks are now being referred to as economic impact payments. Though some Americans are still wondering whether they will qualify for the payments, newly released information from the IRS and treasury departments indicate that only individuals with incomes above $99,000 and married couples without children who filed jointly with incomes exceeding $198,000 will be ineligible. Otherwise, you should expect to receive an economic impact payment for as much as $1,200 per individual and $500 for qualifying dependents which is one very important reason to file your tax return.

 

Why economic impact payments are so important

While many Americans have made small changes to lessen the impact the pandemic has made in their lives, others have a greater challenge making adjustments to meet their more immediate needs like paying for prescription medication and healthcare. Because many U.S. employers suspended operations to support government initiatives to prevent the spread of COVID-19, they suffered massive furloughs and layoffs. More American workers will be facing long-term unemployment, reduced wages and loss of healthcare than ever before. The stimulus package includes extended unemployment benefits and economic impact payments that will help workers and their families through this hardship. 

 

Economic Impact Payment Q & A

We realize that getting the right information and answers to your questions can be challenging. The most important and up-to-date information will be posted by the Internal Revenue Service on IRS.gov/coronavirus. We’ve also put together a list of a few of the most common questions being asked at this time. Answers are based on information received as of April 1, 2020.

 

Q: What if I haven’t filed my 2019 tax return? Will I get an economic impact payment?

 

A: If you have children or had a major life event in 2019 such as marriage, you will qualify for a larger payment than individuals without independents as long as this critical information is included on your tax return. This is why a 2019 tax return is so important. Keep in mind, this is not a time for delays or errors. If you haven’t filed your 2019 tax return, file it now. You’ll get your payment earlier than the filers who waited until the last day, July 15. 

Aside from a recent tax return, you’ll need to meet specific income limits. Contact a professional tax preparation service to help. They will understand current tax laws and will have answers to your questions. They will file your return for you more quickly and accurately than you could on your own. If you’re a returning customer, they will likely have access to your 2018 tax return making it even easier for you to get your 2019 completed. You may find a few businesses who have changed their hours and operational policies due to COVID-19, but many are still offering curbside assistance, phone support and personal consultations.

 

Q: What do I need to do to ensure I get my economic impact payment?

 

A: The Treasury Department and Internal Revenue Service announced that economic impact payments will be distributed automatically and no action is required for those who have filed their returns in 2018 or 2019. 

 

Q: Will this affect the tax refund I am receiving this year?

 

A: You’ll receive both your tax refund and economic impact payments so, do not be afraid to file your 2019 tax return. As a matter of fact, the IRS is strongly encouraging everyone to file their 2018 or 2019 taxes as soon as possible to ensure they have the latest banking information on file and changes to their status. Take full advantage of this opportunity even if you don’t think you’ll need the stimulus payment. The extra money will not only alleviate any financial stress you may be facing but, also help you prepare for the next few months as we recover. By budgeting wisely and using all resources available to you, you’ll work through whatever situation you encounter.

 

Q: Is everyone eligible for economic direct impact payments?


A: You are non-eligible if you’re single with income exceeding $99,000 or are joint filers without children exceeding $198,000.

 

Q: The IRS does not have my direct deposit information. What can I do?


A: A web-based portal is in development to help you provide all the necessary information. It may not be available until the end of summer, so please check IRS.gov/coronavirus for the latest information. 

 

Q: How long will the economic impact payments be available in case I am unable to file?


A: It’s important to keep in mind that you have until July 15 to file your tax return, but by filing now you will be issued the stimulus check sooner which is all that’s necessary to ensure you get your economic impact payment.  

 

It’s important for you to know that as we continue to recover from the pandemic, take it day by day, prepare as much as possible, and ask for help when you need it. Times may be tough but, you’re not alone. We can help. You’ll find a list of our products and services including installment loans and tax preparation at https://www.sunloan.com/services/tax-preparation/