Economic Impact Payments
In response to the ongoing COVID-19 pandemic, the IRS is distributing Economic Impact Payments of $1,200 to most taxpayers. These payments will be issued based on your 2019 income tax return if it has been filed. If you have not yet filed a tax return for 2019, your 2018 return will be used. If you have not filed a 2018 or 2019 tax return and you meet the filing requirement, give us a call as we can help.
If you have dependent children, you will also receive $500 per child.
There are income limitations which may reduce your payment. For higher income individuals, the payment amount is reduced by 5% of the amount that your adjusted gross income exceeds $75,000 ($112,500 for taxpayers filing as head of household or $150,000 for taxpayers filing a joint return), until it is $0.
The $1,200 Payment for eligible individuals with no qualifying children ($2,400 for married couples filing a joint return) will be reduced to $0 once adjusted gross income reaches the following thresholds:
- $198,000 for taxpayers filing a joint return
- $136,500 for taxpayers filing as head of household
- $99,000 for all others
Each of these threshold amounts increases by $10,000 for each additional qualifying child. For example, because families with one qualifying child receive an additional $500 Payment, their $1,700 Payment ($2,900 for taxpayers filing a joint return) will be reduced to $0 once adjusted gross income reaches the following thresholds:
- $208,000 for taxpayers filing a joint return
- $146,500 for taxpayers filing as head of household
- $109,000 for all others
To check your status or eligibility, enter a bank account for direct deposit, or submit information if you have not been required to file a tax return, go to the IRS website.