The IRS has begun dispersing economic impact payments – part of the $2.2 trillion stimulus package – to US citizens to provide economic support amid the COVID-19 pandemic. We’ve compiled some helpful information on the economic impact payment program. Please take a few moments to read the following information and visit the Internal Revenue Service site for the most up-to-date news.
When should you expect your economic impact payments?
Direct deposits have begun, so many citizens have already seen their payments in their accounts. According to the IRS, check payments are tentatively scheduled to begin in May and are predicted to take up to 20 weeks to be fully dispersed to citizens.
We do not have any control over when the payments are deposited or mailed. If you have questions regarding the status of your payment, please visit the Internal Revenue Service web site for more information.
Do you need to apply for the economic impact payments?
No. If you are eligible for the economic impact payment, then you will automatically receive a direct deposit or a check in the mail from the government.
Will you qualify for economic impact payments and how much will you receive?
According to the IRS, eligible individuals with adjusted gross income up to $75,000 for single filers, $112,500 for head of household filers and $150,000 for married filing jointly are eligible for the full $1,200 for individuals and $2,400 married couples filing jointly. In addition, they are eligible for an additional $500 per qualifying child.
For filers with income above those amounts, the payment amount is reduced by $5 for each $100 above the $75,000/$112,500/$150,000 thresholds. Single filers with income exceeding $99,000, $136,500 for head of household filers and $198,000 for joint filers with no children are not eligible and will not receive payments.
In addition, taxpayers likely won’t qualify for an economic impact payment if any of the following apply:
- You can be claimed as a dependent on someone else’s return. For example, this would include a child, student or older dependent who can be claimed on a parent’s return.
- You do not have a valid Social Security number.
- You are a nonresident alien.
- You filed Form 1040-NR or Form 1040NR-EZ, Form 1040-PR or Form 1040-SS for 2019.
To find out your economic impact payment, try this payment calculator from Intuit.
Where will the IRS send your economic impact payments and how can you deposit it?
When doing your taxes, most people are asked to fill out direct deposit information to receive a fast and easy payment. The IRS will be using the direct deposit information from your most recent taxes to deposit your economic impact payment into your account. If you do not use direct deposit, the payment will be sent via paper check in the mail.
If you receive a paper check, you can then deposit it in your local credit union account. If you have a smart device, we recommend downloading our new Mobile Banking app to deposit your check! If you need to set up your online banking, please use this article as a reference to navigate our new Online & Mobile Banking. Members may also use our branch drive-thrus during regular business hours.
Should you be worried about scammers in regard to the economic impact payments?
Yes. Please be aware of who calls, texts, or emails you regarding your payment. Please read below for some ways these scammers may try to trick you.
The IRS says that scammers may:
Emphasize the words “Stimulus Check” or “Stimulus Payment.” The official term from the Government is “Economic Impact Payment.”
Ask the taxpayer to sign over their Economic Impact Payment check to them.
Ask by phone, email, text or social media for verification of personal and/or banking information saying that the information is needed to receive or speed up their Economic Impact Payment.
Suggest that they can get a tax refund or Economic Impact Payment faster by working on the taxpayer’s behalf. This scam could be conducted by social media or even in person.
Mail the taxpayer a bogus check, perhaps in an odd amount, then tell the taxpayer to call a number or verify information online to cash it.
The IRS reminds retirees— including recipients of Forms SSA-1099 and RRB-1099 —that no one from the agency will be reaching out to them by phone, email, mail or in person asking for any kind of information to complete their economic impact payment, also sometimes referred to as rebates or stimulus payments.
The FSU Credit Union is here to help! If you have questions regarding depositing your economic impact payment, please do not hesitate to Contact Us.
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