SPOKANE, Wash. — Since Congress pass the $2.2 trillion coronavirus stimulus emergency relief bill Friday, many Americans are wondering what the requirements are for receiving a stimulus payment.
The stimulus package provides one-time direct payments to Americans of $1,200 per individual adult and $2,400 for married couples, plus an additional $500 for each eligible child.
The full amount will be available for individuals making less than $75,000 and couples making less than $150,000 annually. The amount a person receives will phase out if they earn more, ending for those earning more than $99,000 annually.
One of the top questions KREM has received is: Will I get a stimulus check if I receive Social Security benefits? Here is the answer to that question and others about the economic impact payments.
Will Social Security beneficiaries receive checks?
In a reversal on Wednesday, the U.S. Department of the Treasury and the Internal Revenue Service announced that those who receive Social Security benefits and are not typically required to file tax returns will not need to file a "simple tax return" to receive an economic impact payment.
Instead, payments will be automatically deposited into their bank accounts.
“We want to ensure that our senior citizens, individuals with disabilities, and low-income Americans receive Economic Impact Payments quickly and without undue burden,” said Treasury Secretary Steven T. Mnuchin in a statement. “Social Security recipients who are not typically required to file a tax return need to take no action, and will receive their payment directly to their bank account.”
The IRS will use the information on the Form SSA-1099 and Form RRB-1099 to generate $1,200 payments to Social Security recipients who did not file tax returns in 2018 or 2019. They will receive these payments as a direct deposit or by paper check
Before the announcement, the IRS posted guidance on its website that said low-income taxpayers, senior citizens, Social Security recipients, some veterans and individuals with disabilities would need to file a "simple tax return" to receive an economic impact payment.
What happens if I don’t get a check now?
Kiplinger Magazine reports that those who don’t get a check now won’t lose out on the money – they’ll just have to wait until next year to get it.
As the bill is written, checks that will be sent now are actually just advanced payments of a new refundable tax credit for the 2020 tax year.
If you do not get a stimulus payment in 2020, you can claim it next year as a refund or reduction of the tax you owe if you file a 2020 tax return by April 15, 2021.
Will the money I get be taxed later?
No. The check you receive is really just an advanced payment of a tax credit for the 2020 tax year, according to Kiplinger. It won't be included in your taxable income.
And no, you will not have to repay the money. It is a direct payment given to help Americans through tough economic times and yours to keep.
How will you receive this rebate?
The bill says you will receive this payment electronically to any account you’ve authorized to receive federal tax refunds. That means it will be a direct deposit to an account you file taxes with.
According to the IRS, the Treasury plans to develop a web-based portal for individuals to provide their banking information to the IRS online, so people who have not set up direct deposit can receive checks immediately in the mail.
When will you receive this rebate?
On Sunday, Treasury Secretary Steve Mnuchin said Americans should expect to see their checks directly deposited in their accounts within three weeks. However, many experts believe it could take longer for people who don't have direct deposit set up to get the money in a check.
"We expect that within three weeks, that people who have direct deposit with information with us will see those direct deposits into their bank accounts, and we will create a web-based system for people where we don't have their direct deposit, they can upload it so that they can get the money immediately as opposed to checks in the mail," Mnuchin said on "Face the Nation."
Fortune Magazine reports that the quickest time frame the federal government has been able to issue stimulus checks has been six weeks.