Your stimulus money: What to expect from a government payout
News 8 Now Investigates how much money, where it will be sent to and when people can expect a payment
LA CROSSE, Wis. (WKBT)– Many Americans will soon receive a stimulus payment from the federal government, which is technically an advance on tax credits for your 2020 return. But how much money will you get and how will you receive it?
The CARES Act passed by Congress and signed into law by President Trump in late March outlined who would receive funds from the government.
The law says single taxpayers with an adjusted gross income up to $75,000 will get $1,200. Married couples filing joint returns with an adjusted gross income up to $150,000 will receive $2,400. The payment amount is reduced by $5 for each $100 above these thresholds, according to the Internal Revenue Service.
For each child under 17, families will also receive $500.
Senior citizens, Social Security recipients and railroad retirees are also eligible for $1,200. However, they will not receive additional money for any dependents, at this time.
Any single tax filers with an adjusted gross income over $99,000, or $198,000 for joint filers with no children are not eligible for the stimulus money.
As for how the government will know how much to send and where it will be sent to, the IRS says most people do not need to do anything. For most people, the agency is calculating your payment using either your 2018 or 2019 tax return, depending on which you last filed.
The amount you are owed will be directly deposited in the same banking account reflected on the return field.
If you do not have your direct deposit information there, the U.S Treasury plans to develop a web-based portal to provide that to the IRS online so people can receive payments immediately. That way, you wouldn’t wait for the money in the mail.
“It is a very large priority. The President has made clear. We want to get this money quickly into your hands,” said U.S. Treasury Secretary Steven Mnuchin, during a press conference Thursday.
Social Security recipients will not be required to file a tax return and will receive payments as they would with their benefits, according to the IRS.
So when can you expect to receive a payment?
“I am pleased to report that within two weeks, the first payments will be direct deposit[ed] into taxpayers accounts,” Mnuchin said, during the press conference.
Social security recipients would get their payments “quickly after that,” according to Mnuchin. However, it is still unclear how long it could take for a full rollout of payments.
If you have a tax filing obligation but have not filed a tax return for 2018 or 2019, the IRS is urging you to do so as soon as possible. If you are concerned about how long you have to do so, the IRS said the payments will be available through the rest of 2020. You should put your direct deposit banking information on that return so you don’t have to wait for a check by mail.