Right now, millions of us are facing an uncertain financial outlook. It might be hard to feel confident – but remember you’re not alone and immediate help is available.
At the end of March, Congress passed the CARES Act which provides $350 billion of financial help to Americans impacted by the pandemic.
As part of that, millions of Americans are now eligible to receive a one-time Economic Impact Payment (EIP) to relieve some of the financial burden.
Here’s what you need to know.
Millions of Americans are eligible
You’ll receive an EIP if you have an adjusted gross income of up to $75,000 as an individual filer, $150,000 for married joint filers or $112,500 if you’re the head of a household. Individual filers and heads of households will receive $1200 per person and married joint filers will receive $2,4000 – plus up to $500 for each qualifying child under the age of 17.
If you have an income above those amounts, the payment amount is reduced by $5 for each $100 above the thresholds. Those who earn more than $99,000 as an individual, $136,500 as a head of household or $198,000 for joint filers with no children are not eligible.
You shouldn’t have to do anything
The vast majority of people do not need to take any action to receive their payment. You’ll automatically receive the EIP if you filed tax returns for either 2019 or 2018.
The IRS will calculate and automatically deposit the amount into the same bank account they used when you filed your tax returns. If you need to update your bank account you can do so here.
Didn’t file a tax return?
For those who do not normally file a tax return including individuals with little to no income to file, the IRS has created a non-filer tool – a free and easy way for people to register. You can access the tool on IRS.gov. Simply select ‘Non-filers: Enter Payment Info Here’ and you’ll be taken directly to the tool.
When will I receive my payment?
To help individuals check on the status of their payments, the IRS is building a second tool expected to be available for use by mid-April. Get My Payment will provide people with the status of their payment, including the date their payment is scheduled to be deposited into their bank account or mailed to their physical address.
You’re still eligible if you receive Social Security benefits
Providing you do not exceed the income limits (see above).
Even during unprecedented crises like these it’s important to manage your budget with confidence and we’re here to help. Download our budget tracker to help manage your finances through these difficult times.
For additional information, please visit IRS.gov/coronavirus.