Economic impact payments have started to be issued this week. Here are some basic facts about the payments:
Who is eligible?
- US citizens or residents aliens who have a valid SSN, could not be claimed as a dependent, and have adjusted gross income under limits.
How much is the payment?
- $1,200 for individual earning less than $75,000
- $1,200 for head of household earning less than $112,500
- $2,400 for married filing jointly earning less than $150,000
- If you exceed these amounts, your total payment will be reduced.
Does the housing allowance get included in this calculation?
- No, the portion of the housing allowance you use is excluded from adjusted gross income and from this calculation.
Who will receive the payment automatically?
- Individuals who filed federal income taxes in 2018 or 2019
- Individuals who receive Social Security benefits (retirement, disability SSDI, or survivor)
- Individuals who receive Railroad Retirement benefits
Who needs to take action?
- US citizens or permanent residents who did not file for 2019 will need to go to https://www.irs.gov/coronavirus/non-filers-enter-payment-info-here and follow the link provided.
The IRS announced Wednesday the launch of its “Get My Payment” website, which permits taxpayers to check on the date they can expect to receive their economic impact payment and update their direct deposit information.
How to use Get My Payment
The online application is safe and secure to use. Taxpayers only need a few pieces of information to quickly obtain the status of their payment and, where needed, provide their bank account information. Having a copy of their most recent tax return can help speed the process.
Track the status of their payment
This feature will show taxpayers the payment amount, scheduled delivery date by direct deposit or paper check and if a payment hasn’t been scheduled. They will need to enter basic information including:
- Social Security number
- Date of birth, and
- Mailing address used on their tax return.
Add their bank account information to speed receipt of their payment will also need to provide the following additional information:
- Their Adjusted Gross Income from their most recent tax return submitted, either 2019 or 2018
- The refund or amount owed from their latest filed tax return
- Bank account type, account and routing numbers
Get My Payment cannot update bank account information after an Economic Impact Payment has been scheduled for delivery. To help protect against potential fraud, the tool also does not allow people to change bank account information already on file with the IRS
Clergy Financial Resources serves as a resource for clients to help analyze the complexity of clergy tax law, church payroll & HR issues. Our professionals are committed to helping clients stay informed about tax news, developments and trends in various specialty areas.
This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Clergy Financial Resources and the author do not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique. If you are seeking legal advice, you are encouraged to consult an attorney.
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