Stimulus checks intended to ease the economic impact of the coronavirus pandemic will soon be on their way. Under the Coronavirus Aid, Relief, and Economic Security Act (CARES) Act, most Americans will get one-time direct cash payments of up to $1,200 and couples will get up to $2,400. Families will get an additional $500 per child. The checks are expected to be mailed out in late April or early May, though direct deposits of stimulus payments could arrive for many taxpayers as early as Thursday, April 9.
Some worry they won’t get a stimulus check because they didn’t make enough money required to file returns or because they’ve been retired or out of work. Provisions in the current bill exist to help people who don’t typically file tax returns. Remember, you have until July 15 to file your 2019 tax return.
While the government can access tax returns to get checks ready for the majority of Americans, it would have to look elsewhere, such as the Social Security Administration (SSA), to verify information for those who don’t file. However, according to Mnuchin, Social Security recipients will not need to do anything extra to receive a stimulus check. So regardless of whether you file or not, you will receive a payment.
You generally don’t need to file a return if you make less than the standard deduction, which currently is $12,200. But you can still file and may be eligible for a refund if your employer withhold a federal income tax.
You can think of these payments as advanced 2020 tax credits.
You might be wondering what AGI the government will use to determine the size of your check. Some reports indicate the government plans to use 2019 tax returns if already filed, or 2018 tax returns otherwise. The IRS recently extended the 2020 tax deadline to July 15, 2020, so if you’re taking advantage of that later date and don’t plan to file soon, the IRS will likely wind up using those 2018 returns.
One important thing to note about these stimulus checks is that they do not count towards your taxable income for tax year 2020. In addition, the check is not seen as an advance on your 2020 tax refund, as they are entirely distinct from one another.
Here’s a list of people and entities who likely won’t receive a stimulus check:
Also, an elderly relative or adult child with disabilities won’t qualify you for the additional $500 per child.
The IRS is planning to begin originating electronic stimulus check payments by as early as April 9. The first in line for these inaugural payments are those who qualify for a check and have filed a tax return via direct deposit in either 2018 or 2019. In total, up to 70 million Americans will receive their stimulus checks by April 15. Paper stimulus checks are not expected to be in the mail until April 24 at the earliest. Then, over the course of each week after that date, an additional five million paper checks will be mailed. Based on this timeline, some Americans may not receive their stimulus checks until late summer. If you have not filed a tax return through direct deposit for tax years 2018 or 2019, the IRS is expecting to have an online tool ready by mid-April through which you can enter your bank account information.
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