In the next few weeks, the Treasury Department and the IRS will begin distributing COVID-19 Economic Impact Payments automatically. This payment is part of the stimulus plan to help Americans get through the economic impact of lost jobs or decreased work hours caused by the pandemic.
How Do I Get My Payment?
For the majority of us who file our tax returns, there isn’t any action needed. Your payment will be calculated based on your 2019 tax return, or your 2018 tax return if you have not filed for 2019. The payment will be directly deposited into the same bank account that was designated in your last tax return. If you did not have your tax refund directly deposited into an account you will receive a check in the mail. This will all happen automatically and with no action needed for most Americans.
How Much Will My Payment Be?
Individual tax filers with an adjusted gross income of up to $75,000 will receive $1,200. Joint filers with up to $150,000 will receive $2,400. Parents also get up to $500 for each qualifying child. If your gross income exceeded the baseline income mentioned above, your payment is reduced by $5 per $100 above the threshold. Individuals with income exceeding $99,000 or couples exceeding $198,000 with no children are not eligible for the stimulus.
EXAMPLE: Couple with a household income of $160,000 who don’t have children would get $1,900.
How Do I Identify a Scam?
As mentioned above, your payment will be calculated and paid automatically. You will not be contacted by the IRS or any agency to confirm personal information or to collect a fee. If you receive a text, phone call or email that asks you to provide any personal account information, it is a scam. There is no need to engage with these scammers. All you need to do is hang up or delete the text or emails.
For more information about the Economic Impact Payments, we recommend visiting the IRS online. To find out about the recent investigation into related scams you can download a copy of the press release from our local IRS office here.