In an effort to help Americans withstand the new challenges brought on by the coronavirus pandemic, the CARES Act called on the Internal Revenue Service (IRS) to issue Economic Impact Payments. These payments began going out in April 2020, and many families and individuals have already received their allocated funds. Of course, some people are still waiting.
If you haven’t seen a deposit into your bank account or a check come through the mail yet for your CARES Act stimulus payment, then it’s time to be proactive. There are a few things you might be able to do to speed up the process. A quick recap on how the Economic Impact Payments work can help ensure you get what you’re owed.
How the Stimulus Payment Works
The government is currently in the process of sending payments of $1,200 to single taxpayers, $2,400 to married taxpayers, and $500 payments to taxpayers for every child in their home who is under age 17. Of course, there are a few stipulations based on income level. The amounts listed above are what taxpayers will receive if their adjusted gross income is less than $75,000 for single taxpayers—or less than $150,000 for married couples filing joint tax returns.
Reduced payments are available for taxpayers with higher reported income, but those also come with limits. For individuals, the stimulus payment phaseout is $98,000. Married taxpayers will have phaseouts at $198,000. To learn more about the process, you can check out this article from the Consumer Financial Protection Bureau.
Do You Know Your Payment Status?
Because the payments are being issued based on the information provided on your 2019 or 2018 tax returns, it’s important to make sure that all of your details are current. And because some citizens and US residents do not need to file tax returns, they may be at risk for missing their payment altogether. A little due diligence can go a long way.
Fortunately, the IRS has an online option for reviewing your payment status. It’s called the Get My Payment tool, and it can help you review the steps for how to receive your stimulus payment faster though direct deposit. This is a great way for anyone to follow-up and verify their details, but it’s especially important for college students and seniors.
Seniors will probably want to review the payment tool if they did not file a 2018 or 2019 tax return. They may be set to receive their payment though the information on their 1099-SA Form, but updating their details through the online tool might help you get your payment sooner than later.
Because college students may or may not be claimed as a dependent, these individuals will also need to pay special attention to their own stimulus payment eligibility. You might need to review the tool as a non-filer. On the other hand, you could also consider whether this would be a good time to update your own filing status for 2019. If someone else hasn’t already listed you as a dependent on their own tax return, you may want to file your own return to help ensure that you receive your full stimulus payment.
If you have any questions about how to proceed, please don’t hesitate to give our team at NSO and Company a call at (317) 588-3131. We’ll help you review your options to make sure you save the most money possible on your tax return, and that you’re on a good course for tax planning in the years to come