The Internal Revenue Service (IRS) along with the Treasury Department recently announced details about the distribution of economic impact statements. According to these agencies, most qualifying taxpayers will not need to take any action to receive the payments. The agency has stated it will use past filing information to help make its determinations and to know where to send the payments.
Those who do not file returns may still receive payment. The IRS states in its most recent news release that these individuals, which may include low-income earners and senior citizens, may need to file a simple tax return in order to receive the payment.
What is this about?
Last week, President Donald Trump signed an economic stimulus package designed to help eligible Americans find financial stability while navigating the impact of the coronavirus. The bill allows the government to send federal stimulus payments to taxpayers as well as provide interest free loans and tax breaks for businesses.
What is an economic impact payment?
According to the IRS, those who qualify for full payment include married couples who earn a combined $150,000 and individuals with a gross income of up to $75,000. The agency currently defines a full payment as $2,400 for married couples and $1,200 for individuals. Those with children will also receive $500 for each qualifying child.
The situation is evolving as the full impact of COVID-19 on our nation’s economy is not yet known. As a result, we will continue to provide updates on the impact of the virus on taxes and the actions of the IRS as they become available.