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With the CARES Act signed into law, many taxpayers are wondering if they qualify for the economic impact payment and when they can expect to receive theirs. Here are the answers to the most commonly asked questions surrounding this new stimulus incentive.
Q: Do I qualify for the economic impact payment?
A: Taxpayers with adjusted gross income up to $75,000 for individuals and up to $150,000 for married couples filing joint returns do qualify for the full payment. Single filers with income exceeding $99,000 and $198,000 for joint filers with no children are not eligible to receive the payment.
Q: How much do I stand to receive?
A: Those who qualify will receive a payment of up to $1,200 for individuals or $2,400 for married couples. Additionally, parents would also receive $500 for each qualifying child. If you are above the $75,000 and $150,000 thresholds outlined above, you are eligible, however, it will be reduced by $5 for each $100 above those thresholds.
Q: Do I have to do anything to receive the payment?
A: Eligible taxpayers who filed tax returns for either 2019 or 2018 would automatically receive an economic impact payment calculated by the Internal Revenue Service (IRS). The economic impact payment would be deposited directly into the same bank account reflected on your 2019 tax return filed (or 2018 if that was the last filed).
However, some seniors, low-income taxpayers, Social Security recipients, veterans and individuals with disabilities who typically do not file returns, will need to file a simple tax return to receive an economic impact payment and would not owe tax on it.
Q: When can I expect to receive my payment?
The IRS recently announced the distribution of economic impact payments would begin in the next three weeks. If you have an outstanding tax filing obligation for 2018 or 2019, you are urged to file your return as soon as possible to receive an economic impact payment timely.
Q: How long is the economic impact payment available for?
A: Economic impact payments will be available throughout the rest of 2020.
For more information, you can visit the IRS’ Coronavirus Tax Relief site. If you have questions regarding your last filed tax return and its impact on the stimulus payment, contact your Doeren Mayhew tax advisor.
This publication is distributed for informational purposes only, with the understanding that Doeren Mayhew is not rendering legal, accounting, or other professional opinions on specific facts for matters, and, accordingly, assumes no liability whatsoever in connection with its use. Should the reader have any questions regarding any of the news articles, it is recommended that a Doeren Mayhew representative be contacted.
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