Last week the IRS began distributing economic impact payments to millions of Americans as part of the Coronavirus Aid, Relief and Economic Security Act (CARES Act). More will receive payments as the IRS is calculating and automatically sending payments to eligible individuals.
I put this “5 W’s” together to help you identify any clients you have who you may need to check in with to ensure they have received their payment. Feel free to send this short article to your clients who have questions about their eligibility.
WHO is eligible:
- US Citizens, permanent residents or qualifying alien residents
- Can’t be claimed as a dependent on someone else’s return
- Must have a SSN that is valid for employment — There is an exception that allows that if either spouse is member of the U.S. Armed Forces at any time during the year then only 1 spouse needs to have a valid SSN
- Have adjusted gross income within the parameters set by the legislation
WHAT is it:
The EIP is a payment of up to $1200 for those who qualify — $75,000/$112,500/$150,000 (Individuals (I)/Head of Household (HOH)/Married Filing Jointly(MFJ))
Reduced payment amounts if AGI is:
- $75,000 – $99,000 (I)
- $112,500 – $136,500 (HOH)
- $150,000 – $198,000 (MFJ)
Payments are reduced by $5 for every $100 of income above the thresholds.
WHERE is the money:
- The funds will be deposited directly into your account, which the IRS has from:
- Direct deposit info from your most recent tax return
- If you provided the information on the IRS Get My Payment application
- If you used the Non-filers: Enter Payment Info Here tool
WHEN will I receive it:
Most payments have already been processed and should have been received.
WHY haven’t I received my payment:
The IRS needs more information. Check IRS Get My Payment to learn more about your status.