United States:
How To Get Your Individual Rebate (And Fast!)
17 April 2020
Ropes & Gray LLP
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The CARES Act provides for economic impact payments of $1,200
per individual ($2,400 for joint filers).
(See Ropes & Gray Alerts on
CARES Act, and
certain key tax provisions of CARES Act.) The
chart below summarizes the CARES Act, the IRS Press Release
Press Release.
On April 2, 2020, the IRS Press Release IR-2020-65 warned of
possible scams related to these payments.
Am I eligible for an economic impact
payment?
|
- United States residents (i.e., an individual who has a
social security number).
- Income limitation, without qualified children:
- $99,000 for single filers,
- $136,500 for head of household filers, or
- $198,000 for joint filers.
- For each qualifying child add an additional $10,000 to the
income limitation.
e.g., the income limitation for joint filers with two
qualifying children is $218,000.
|
What do I need to do in order to receive an economic
impact payment?
|
- Nothing, if
- 2018 or 2019 income tax return has been filed, or
- you receive Social Security payments.
- File a simple return, if your 2018 or 2019
income tax return has not been
filed, or you
do not receive Social Security
payments.>sup>1
- If possible, any 2019 or 2018 income
tax returns or simple returns should be
filed electronically. As of April 2, 2020, only one IRS
service center, in Ogden, UT, is open, which means that the IRS may
be delayed in sorting and handling paper forms.
|
How do I receive my economic impact
payment?
|
- Direct Deposit: The economic impact payment will be
deposited directly into the same banking account reflected on the
filed income tax return or with the Social Security
administration.
- Treasury will develop a web-based portal for individuals to
track their payments, and for individuals to provide their banking
information to the IRS, so that individuals can receive payments
immediately as opposed to checks in the mail.
- The IRS expects to start sending economic impact payments via
direct deposit the week of April 13,
2020.
- Check: If the IRS does not have direct deposit
information for you, the economic impact payment will be sent in
the mail, via paper check.
- The IRS expects that it will take more time to make payments
via check.
|
How much will my economic impact payment
be?
|
- $1,200 per individual ($2,400 for joint filers).
- An additional $500 per qualifying child.
- Qualifying child means an individual who, in the rebate year,
is under the age of 17 and
- is the taxpayer's child, brother, sister, stepbrother or
stepsister, or a descendent of such child or relative;
- has the same principal place of abode as the taxpayer for the
majority of such taxable year;
- has not provided over one-half of their own support for the
taxable year;
- has not filed a joint income tax return with their own
spouse for the taxable year; and
- is a U.S. Citizen or resident with a social security number or,
if adopted, an adoption taxpayer identification number.
|
Do I earn too much money to receive a full economic
impact payment?
|
- For individuals with income above $75,000 ($112,500 head of
household filers; $150,000 joint filers), the economic impact
payment amount is reduced by $5 for each $100 above the $75,000 /
$112,500 / $150,000 thresholds.
- Individuals without qualifying children with income exceeding
$99,000 ($136,500 for head of household filers; $198,000 for joint
filers) will not receive the payment.
- For each qualifying child add an additional $10,000 to the two
income limitations discussed above.
|
Footnote
1.
ubhttps://www.irs.gov/newsroom/economic-impact-payments-what-you-need-to-know
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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