Under the CARES Act, the IRS will be sending one-time payments to taxpayers. Most adults will receive $1,200, although the actual amount depends on income and family size. More specifically, single filers with adjusted gross income up to $75,000 will received the full $1,200 payment. Married couples filing jointly with up to $150,000 in adjusted gross income will receive $2,400. The payment is reduced by $5 for each $100 above those thresholds. Parents will also receive $500 for each qualifying child. However, no payments will be provided to single filers with income over $99,000 or to joint filers with no children and income over $198,000. The IRS will use tax returns from 2019 and 2018 to figure out who qualifies for a check – individuals who do not qualify based on those returns may still receive a check in the future after 2020 taxes are filed.
- Most taxpayers do not need to apply to obtain these benefits. The IRS will provide the payments either by mail (starting April 24) or direct deposit (starting April 9 if the IRS has bank account information from the taxpayer’s 2019 or 2018 tax returns).For those who typically do not file a tax return, the IRS launched a portal to submit direct deposit information to the IRS so that they don’t have to wait for a mailed check.
- For individuals who receive Social Security payments (65 years + or disability), filing a tax return is not required, but may be recommended if you have qualifying children under 17 years of age, providing an additional payment of $500 per child.
- Check on eligibility and status of pending payments here.