Relief In Sight - Part 1 Economic Impact Payments

Dated: April 16 2020

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Relief In Sight title

Relief In Sight

Part 1- Economic Impact Payment

In this series we’ll take a look at a new federal law, the Coronavirus Aid, Relief, and Economic Security (CARES) Act, that provides protection for taxpayers, homeowners, small business owners, contractors, and workers unemployed due to the effects of COVID-19 and government responses to it. 

I’ve put this together from sources listed within and at the end of this article.  I am not a financial planner, attorney, or debt relief specialist. This is not a recommendation for any action and is only intended to be a source of learning what options might be available. I recommend talking with an expert before making decisions in this critical area of your life. If you don’t have a consultant you trust, I’d be happy to provide you contact information for attorneys and financial planners, or to discuss real estate options in the current market.

See entries in this series:

Part 1 – Economic Impact Payments

Part 2 – Mortgage Relief

Part 3 – Paycheck Protection Plan loan

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Table of Contents

Who’s eligible for the economic impact payment?

How much will I get?

How will I get it?

Can I change the way or the place I receive my payment?

What if I didn’t file taxes for 2018 or 2019?

When will I receive my payment?

What about scammers?

For More Information/Resources

Who’s eligible for the economic impact payment?

Generally, it is for U.S. residents with adjusted gross incomes up to $75,000 for individuals and up to $150,000 for married couples filing joint returns. Eligible retirees and recipients of Social Security, Railroad Retirement, disability or veterans' benefits as well as taxpayers who do not make enough money to normally have to file a tax return will receive a payment. This also includes those who have no income, as well as those whose income comes entirely from certain benefit programs, such as Supplemental Security Income benefits.

Retirees who receive either Social Security retirement or Railroad Retirement benefits will also receive payments automatically.

You are NOT eligible if:

§     you can be claimed as a dependent on someone else's return,

§     you don't have a valid Social Security number,

§     you are a non-resident alien, or

§     you filed a Form 1040-NR, Form 1040NR-EZ, Form 1040-PR, or Form 1040-SS for 2019.

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How much will I get?

Up to $1,200 for individuals, and up to $2,400 for married couples, and $500 for each qualifying child. The amount is reduced for adjusted gross incomes beyond $75,000 for individuals and $150,000 for married couples filing joint returns. The payment amount is reduced by $5 for each $100 above those thresholds with it phasing out at $99,000 and $198,000 respectively.

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How will I get it?

If you filed your 2018 or 2019 taxes and provided the IRS direct deposit information for your bank account, then the payment should come directly to your bank account. If you filed your taxes and elected to receive your taxes by mail, then you will receive a check by mail.

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Can I change the way or the place I receive my payment?

Yes. If you want to provide the IRS your bank account information for direct deposit that they otherwise wouldn’t have, then starting in mid-April (17th??) go this IRS website and read the “Filers: Get Your Payment” section: https://www.irs.gov/coronavirus/economic-impact-payments

If you moved since you last filed, go the same section and click on the link ‘let us know your new mailing address”.

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What if I didn’t file taxes for 2018 or 2019?

You may still receive a payment. This would include people who just didn’t have any income or weren’t required to file a tax return for other reasons. Go to this IRS website and read the “Non-Fliers: Enter Your Payment Info Here” section that contains a button to click to enter your payment information: https://www.irs.gov/coronavirus/economic-impact-payments

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When will I receive my payment?

“Over 80 million Americans who have set up direct deposit with the IRS by Wednesday [April 15] will receive their coronavirus stimulus payments, Treasury Secretary Steven Mnuchin said Monday” April 13 according to Business Insider and other news outlets. https://www.businessinsider.com/80-million-americans-stimulus-checks-this-week-coronavirus-relief-treasury-2020-4

The IRS plans to mail a letter to your last known address within 15 days after the payment is paid. The letter will provide information on how the payment was made and how to report any failure to receive the payment.

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What about scammers?

There never seems to be a lack of these. The IRS warns about identity thieves having stepped up phishing scam efforts to capitalize on COVID-19 and Economic Impact Payments. These emails usually have one or more of the following elements: 1) urgency or emergency (e.g., Your password has expired. Act now…) 2) A link that appears to a website or something that the email urges you to click. 3) Phony sender pretending to represent someone in authority at say the IRS, or a Bank or an agency that is supposedly working with the government or 3rd party assistance group. Remember, the IRS will not call, email, text or use social media to contact anyone about Economic Impact Payments. These are impersonation scams by thieves seeking to steal bank account or other sensitive data. Do not fall for these scams. Don’t click the links in those emails.

Taxpayers can report suspicious emails posing as the IRS to our *PHISHING mailbox at phishing@irs.gov.

For security reasons, the IRS plans to mail a letter about the economic impact payment to the taxpayer’s last known address within 15 days after the payment is paid. The letter will provide information on how the payment was made and how to report any failure to receive the payment. If a taxpayer is unsure they’re receiving a legitimate letter, the IRS urges taxpayers to visit IRS.gov first to protect against scam artists.

Also, there have been reports that scammers are pretending to be the government, contacting people by robocall, text message, email and other outreach. These scammers say they can get people financial help during the COVID-19 pandemic, and then ask for money or personal information, like your Social Security, bank account or credit card number. This is a SCAM.

Don’t trust anyone who offers financial help and then asks for money or personal information. Federal and local disaster workers do not solicit or accept money. The Department of Homeland Security, FEMA, U.S. Health and Human Services and the Centers for Disease Control staff never charge for disaster assistance.

The Federal Trade Commission scams page has tips to help you avoid scams online, on the phone, by text and through email. If you see a scam, please report it to the Federal Trade Commission: ftc.gov/complaint.

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For More Information/Resources

Economic Impact Payment Information Center

https://www.irs.gov/coronavirus/economic-impact-payment-information-center

Economic Impact Payments

https://www.irs.gov/coronavirus/economic-impact-payments

 

IRS, Security Summit partners warn tax professionals on scams, urge additional security measures to protect taxpayer data

https://www.irs.gov/newsroom/irs-security-summit-partners-warn-tax-professionals-on-scams-urge-additional-security-measures-to-protect-taxpayer-data

 

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Jeff Coleman

Jeff Coleman is a candid, detailed and caring communicator. Working with one of the top performing real estate offices in St. Louis he provides more buyers for your property and more sellers for you ....

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