Economic Impact Payments
According to Fox Business, a Senior Treasury Official says that between $50 million and $60 million will be deposited by the IRS (Internal Revenue Service) this Wednesday. The individual payments are part of the $2.2 trillion CARES Act legislation designed to mitigate the pandemic induced economic collapse.
The CARES Act has approved cash deposits of $1200 for individuals that earn less than $75,000 a year. For couples that earn less than $150,000 that amount doubles to $2400. Additionally, each child is allocated $500. As income levels rise the program phases out. For individuals earning $99,000 a year and couples that earn $198,000 or more, no cash will be distributed.
Last week, the IRS launched a tool to support individuals that do not file for taxes – that path that is being utilized to determine who receives the payments.
The non-filer tool, developed in partnership between the IRS and the Free File Alliance, provides a free option designed for people who don’t have a return filing obligation, including those with too little income to file. The feature is available on the IRS website.
“People who don’t have a return filing obligation can use this tool to give us basic information so they can receive their Economic Impact Payments as soon as possible,” commented IRS Commissioner Chuck Rettig. “The IRS and Free File Alliance have been working around the clock to deliver this new tool to help people.”
Automatic payments will also be distributed to people receiving Social Security retirement, survivors, disability (SDDI), or survivor benefits and Railroad Retirement benefits – at some point in the “near future.”
Additionally, individual taxes are now due on July 15, 2020, as the IRS has moved the deadline from the traditional April 15th date.