April 7, 2020
Expecting a Government Stimulus Payment? Here's What You Should Know.
Last updated December 21, 2020
The U.S. government recently passed a $2 trillion stimulus package called the Coronavirus Aid, Relief, and Economic Securiy (CARES) Act that helps a stumbling economy – and may help you, too. If you are expecting to receive an economic impact payment (frequently referred to as a stimulus payment), here’s what you should know.
The first round of payments started to go out to individuals on April 10, 2020. These payments were issued electronically to many individuals who had bank account information on file with the IRS. According to reports, the IRS is set to send out another round of electronic payments the week of April 27th to two different groups. The first group are tax filers who successfully used the IRS website’s “Get My Payment” tool to add bank information by midday on April 22, and the second group are non-filers who receive Social Security, survivor and disability benefits.
People who receive Supplemental Security Income or veterans benefits and don’t file tax returns should get their payments by early May, according to reports.
If eligible, the amount of your payment will be based on the adjusted gross income reported on your 2019 federal income taxes (or 2018 if you haven’t filed your 2019 taxes yet). Note: if you haven’t filed your 2019 taxes, you now have until July 15 to file and to pay any taxes you may owe, without penalty.1
If you filed as single and reported up to $75,000 in adjusted gross income, you’ll get a $1,200 payment. For adjusted gross income over $75,000, your stimulus payment will be reduced by $5 for every additional $100 above $75,000.
If you filed as married filing jointly and reported up to $150,000 in adjusted gross income combined, you will get a $2,400 payment. For adjusted gross income over $150,000, your stimulus payment will be reduced by $5 for every additional $100 above $150,000.
If you filed as head of household and reported less than $112,500 in adjusted gross income, you will get a $1,200 payment. For adjusted gross income over $112,500, your stimulus payment will be reduced by $5 for every additional $100 over $112,500.
Parents, you may claim $500 per qualifying child.
If you are unemployed, you may still get a payment. The payment amount is based on what you reported on your 2019 federal income taxes (or 2018 if you haven’t yet filed your 2019 taxes). That means if you are currently unemployed but reported adjusted gross income on your 2019 taxes, your check amount will be based on your adjusted gross income on file (as discussed above).
If you are unemployed, you may be eligible for additional unemployment benefits from the federal government pursuant to the CARES Act. Unemployed workers are eligible to receive an additional $600 a week in unemployment benefits from the federal government on top of ordinary state-authorized weekly benefits until July 31. State unemployment benefits vary by state. To learn more about the amount of unemployment insurance offered in your state, visit cbpp.org. You can locate your state’s unemployment insurance office by visiting dol.gov.
Millions of individuals are not required to file income tax returns, and stimulus payments may still be available under the CARES Act.
If you receive Social Security retirement, survivors, disability (SDDI), or survivor benefits and Railroad Retirement benefits, the IRS will send stimulus payments automatically. For others who are not required to file income tax returns, such as if you are a low income earner, the IRS has created a tool to enable you to get a stimulus payment. The IRS non-filer tool asks for basic information such as Social Security Number, name, address, and dependents and uses the information to confirm eligibility and calculate the payment. The tool also permits you to include bank account information to receive your stimulus payments by direct deposit.
If you are a low-income worker who earned less than $12,200 individually (less than $24,400 for those filing as married filing joint), a veteran beneficiary, or a Supplemental Security Income recipient, the non-filer tool is for you. Additionally, even though individuals receiving Social Security, SSDI and Railroad Retirement benefits will receive stimulus payments automatically, any such individuals who have dependents can also use the IRS tool in order to claim $500 per qualifying child.
The default method for issuing your payment will be the same method you chose for your 2019 federal income tax return (or 2018 if you haven’t filed your 2019 taxes yet).
If you elected to have your tax refund direct deposited, your stimulus payment will be direct deposited electronically to the account on file.
If you elected to have your tax refund issued by check, the default is for your check to be mailed to the address on file. However, if your stimulus check has not been mailed yet by the IRS and you prefer your funds to be direct deposited, then you can enter your bank account information in the IRS web-based portal. The portal allows you to track the status of your payment. Visit the Get My Payment portal to make those updates.
Financial services providers, including ACE Cash Express, are considered essential businesses in many areas, and we will remain open so long as we are permitted to and safely able to do so. Find an ACE Cash Express location near you.
Remember, generally, your economic impact payment is based on your tax return on file. If you haven’t yet filed your 2018 or 2019 taxes, now may be the time to do so. Search for a tax preparer near you by entering your zip code here.
If you anticipate receiving your economic impact payment to your ACE Flare™ Account by MetaBank® account or ACE Elite™ Visa® Prepaid Card, please visit this blog post for helpful information. You’ll also find a list of government resources where you can learn more about economic impact payments.
Stay informed on future coronavirus updates by visiting the CDC’s resource center.
1. Populus Financial Group, Inc. (d/b/a ACE Cash Express) does not offer tax advice and should not be considered a tax service. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied upon for tax advice. Please consult your tax advisor before engaging in any transaction if you have questions regarding your taxes.