There is a lot of interest surrounding the COVID-19 CARES Act Economic Impact Payments and we want to provide you with clear, reliable information about them.
We recommend the Tax Foundation for reviewing in detail some of the most frequently asked questions (FAQs), such as:
- How much of a rebate will I receive?
- How do I get my rebate?
- Which dependents qualify for a rebate?
- What if I had a baby in 2019 or earlier this year and haven’t filed a return?
- If I make more income in 2020, do I have to pay any amount back?
Included in their FAQs is a CARES Act Rebate Calculator. All you need to do is review your most recently filed federal tax return (2019 or 2018 in lieu) and use the information provided there.
You will need to know:
- Filing Status
- This is located on the header of your Form 1040
- Single or Married filing separately would choose ‘individual’
- Qualifying widower would choose ‘Head of Household’
- Married filing jointly and Head of Household would make their respective selection
- Adjust Gross Income (AGI)
- On your 2019 Form 1040, Line 8b
- On your 2018 Form 1040, Line 7
- Number of Children
- This is specified as Dependents on Form 1040
- ONLY use the number of dependents who qualify for the Child Tax Credit (box 4 is marked)
The IRS addresses additional FAQs, such as:
- The IRS does not have my direct deposit information. What can I do?
- I have not filed my tax return for 2018 or 2019. Can I still receive my payment?
The Economic Impact Payment is a rebate established as a refundable tax credit based on your most recently filed Form 1040 tax return (2019 or 2018), and thus is not taxable. It will be reconciled to your 2020 Form 1040; this means, if you have additional qualifying dependents in 2020, the credit will be applied to your 2020 tax liability.
Most people want to know WHEN? Currently, we cannot provide a good answer. The Department of the Treasury is indicating they want payments to be deposited by April 17th. There has not been a clear indication of who those taxpayers will be, other than those who have electronically filed their tax return and used direct deposit for refunds or payments. The Economic Impact Payment will be deposited directly into the same banking account provided on the filed return.
The IRS urges taxpayers to be on the lookout for calls, texts, and email phishing attempts. The IRS will not call or email you asking to verify or provide your financial information so you can get an economic impact payment or your refund faster. Also, know that the IRS will not refer to payments as a Stimulus Check or Stimulus Payment, but by its name, Economic Impact Payment.
It is our goal to alleviate your uncertainties by keeping you up to date and informed as the situation evolves. Please let us know if you have a specific question that is not addressed in the FAQs or the content provided by emailing us at beanlabteam@beanlab.com
