For taxpayers who did not provide direct deposit information, in the coming weeks the Treasury plans to develop a web-based portal for individuals to provide their banking information to the IRS online so that individuals can receive payments immediately as opposed to checks in the mail.
Under the IRS plan, paper checks would be sent to the lowest-income Americans first, prioritizing payments for individual taxpayers with incomes of $10,000 or less on April 24.
Checks for individuals who earn less than $20,000 or less would be in the mail May 1, followed by those with incomes of $30,000 on May 8 and $40,000 on May 15, continuing in increments of $10,000, per week. The IRS plans to send 5 million checks per week.
How Many Stimulus Checks Will I Get?
You'll get just one payment. Earlier proposals called for multiple checks. One plan put forth by a group of Democratic Senators even required quarterly payments to Americans until the crisis ends. However, the law signed by President Trump only authorizes a single payment.
How Much Money Will I Get?
Everyone wants to know how much money they will get. You may have heard that stimulus checks will be for $1,200—but it's not that simple. That's just the base amount. Your check could actually be much higher or lower.
To calculate the amount of your check, Uncle Sam will start with that $1,200 figure. If you're married and file a joint tax return, then both you and your spouse will get $1,200 (for a total of $2,400). If you have children who qualify for the child tax credit (they must be 16 years old or younger), you get an additional $500 for each child. So, for example, a married couple with two children can get up to $3,400.
Now the bad news. Stimulus payment amounts will be phased-out for people at certain income levels. Your check will be gradually reduced to zero if you're single, married filing a separate tax return, or a qualifying widow(er) with an adjusted gross income (AGI) above $75,000. If you're married and file a joint tax return, the amount of your stimulus check will drop if your AGI exceeds $150,000. If you claim the head-of-household filing status on your tax return, your payment will be reduced if your AGI tops $112,500.
Also note that the IRS, which will issue the payments, will look at your 2019 tax return for your filing status, AGI, and information about your children. If you haven't yet filed your 2019 return (now due July 15), the IRS will go to your 2018 return for the necessary information.
Again, we have an easy-to-use Stimulus Check Calculator to help you figure out the estimated amount of your check (based on either your 2018 or 2019 return). Check it out!
If I Haven't Filed My 2019 Return Yet, Should I Do That Now or Wait?
There's an opportunity to manipulate the amount of your stimulus check if you haven't already filed your 2019 return. For some people, you could end up with a larger check depending on whether you file your 2019 return right away or wait to file until after you get your stimulus payment. To find out which is better, use the Stimulus Check Calculator to run the numbers using both your 2018 and projected 2019 returns (a best guess for 2019 will do in a pinch). If you get a higher amount using your 2018 return, wait to file. If the amount is better using 2019 numbers, then file as soon as you can.
If I Wait to File My 2019 Return to Get a Bigger Check, Will I Have to Pay Back the Difference Later?
Let's say you wait to file your 2019 return because your stimulus check will be $100 more if the IRS bases your payment on your 2018 return. Will you get to keep that additional $100?
That's still an open question. The way the law is written, the checks that will be sent now are actually just advanced payments of a new refundable tax credit for the 2020 tax year. We don't know yet how the IRS will treat stimulus payments that are more than the 2020 tax credit amount. (If the check is less than the authorized credit, you'll get the difference when you file your 2020 return.)
On the one hand, the IRS is authorized to issue regulations or guidance "deemed appropriate to avoid allowing multiple credits or rebates to a taxpayer." They might use this authority to get the $100 back (e.g., through an additional tax on your 2020 tax return). On the other hand, there was no mechanism for giving back any "extra" stimulus check money when similar payments were issued back in 2008. But, then again, all the 2008 stimulus checks were based on the same year's tax return.
We'll keep an eye out for IRS guidance addressing this situation, so check back later. However, even if you end up having to give some of your stimulus check back to Uncle Sam, that's not necessarily a terrible thing. You might need the cash more now than you'll need it later, and you can treat the additional amount as an interest-free loan from the government.
What If I Didn't File a Tax Return in 2018 or 2019?
The IRS has created a new website that allows non-filers to request economic impact payments.
Individuals receiving Social Security retirement or disability benefits, or Railroad Retirement benefits, are not required to use this new tool to receive their payments. The IRS will still rely on Form SSA-1099 and Form RRB-1099 for purposes of determining the amount of the impact payment. However, if these individuals have dependents, and have not filed a return for 2018 or 2019, they should visit the website; otherwise, their payment will only be issued for the $1,200 for the recipient and not their spouse or any of their dependents.
Here is a list of who should go to the website and enter their information:
- Individuals who haven't filed a 2018 or 2019 return because their income is below the filing requirement threshold;
- Veterans beneficiaries and SSI recipients; and
- Social Security, SSDI, and Railroad Retirement beneficiaries with qualifying dependents.
Here is the link to the website:
Will Lower-Income People Get Smaller Checks?
An earlier version of the bill that passed did provide smaller checks for lower-income Americans; however, that is not part of the bill ultimately signed by the president. Under the earlier version, taxpayers with little or no income tax liability, but at least $2,500 of "qualifying income" (earned income, Social Security retirement benefits, and certain compensation and pension benefits paid to veterans), would have gotten a minimum rebate check of only $600 ($1,200 for joint filers). Again, however, that provision was dropped from the bill and is not part of the new law.
Will the Money I Get Now Be Taxed Later?
No. As we mentioned earlier, the check you receive is really just an advanced payment of a tax credit for the 2020 tax year. As such, it won't be included in your taxable income.
What If I Had a Child in 2019, But I Haven't Filed My 2019 Return Yet?
If you had a baby last year, but you haven't filed your 2019 return, you might be worried about losing $500 because the IRS doesn't know about your new bundle of joy. That actually could be a problem—you won't get that extra $500 if you don't file before the IRS starts processing your payment. However, if you have a child now that isn't reflected on your 2018 return, you'll be able to account for him or her when you file your 2020 return next year (you'll get an extra $500 credit then). So, while you won't get that extra $500 in your stimulus check now, you'll still get it later.
In fact, if your stimulus check is less than what you're entitled to receive for any reason, you can make up the difference with an extra tax credit on your 2020 return.
What If My Child Turned 17 in 2019, But I Haven't Filed My 2019 Return Yet?
You only get an additional $500 for a child who qualifies for the child tax credit. That means your son or daughter can't be older than 16. However, what if your child turned 17 in 2019, but you haven't filed your 2019 tax return yet (which would show the child's current age)? Are you going to get an extra $500 based on your child's age as reflected on your 2018 return? If so, will you get to keep that additional amount?
Those are still open questions. On the one hand, the IRS will know your child's current age based on your 2018 tax return (they can just add a year), so they might just go ahead and adjust your stimulus check accordingly. On the other hand, as we mentioned earlier, if a stimulus check was larger than it should have been back in 2008, there was no way to pay back the extra money. We don't know yet which way the IRS will go this time around.
Again, we'll let you know if the IRS issues guidance addressing this and other situations where a stimulus check is more than it should be.
Will Young Adults Who Live with Their Parents Get a Check?
Even if they have a job or are a student, young adults who still live at home will not get a check if they can be claimed as a dependent on anyone else's tax return (whether or not they are actually claimed as a dependent on someone's return). We're mainly talking about children who are 17 or 18 years old, or college students who are 23 or younger at the end of the year. The IRS will look at your 2019 or 2018 tax return to determine if someone could claim you as a dependent.
Do I Have to Have a Social Security Number to Get a Check?
Yes, you must have a Social Security number to receive an economic stimulus check. Your spouse and any child you're receiving $500 for must also have a social security number. An individual taxpayer identification number (ITIN) is not good enough.
There are two exceptions to this rule. First, an adopted child can have an adoption taxpayer identification number (ATIN) instead of a Social Security number. Second, for married members of the U.S. armed forces, only one spouse needs to have a Social Security number.
Will the IRS Take My Check If I Owe Back Taxes?
Stimulus money is generally not subject to reduction or offset to pay back taxes or other debts owed to the federal government.
What If My Check Doesn't Arrive?
Within 15 days of mailing your check (or directly depositing it into your bank account), you will receive a notice in the mail indicating the method of payment, the amount of payment, and an IRS phone number to call if you didn't receive your payment.
Both the payment (paper check) and notice will be mailed to your last known address the IRS has on file. If you have recently moved, you should file a Form 8822 with the IRS and a change of address notice with the U.S. Postal Service. This will ensure correspondence and payments from the IRS will be sent to your new address.