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Economic Impact Payments

Posted by Admin Posted on May 03 2020

Economic Impact Payments – even though this part of the CARES (Coronavirus Aid, Relief and Economic Security) Act was intended to be the most direct and expedient aspect of the aid program, many questions seem to be coming up, especially about eligibility for receiving the payment.  Generally speaking, as long as a taxpayer doesn’t have too high of AGI (Adjusted Gross Income), which for this purpose means in excess of $99k for a single filer and $198k for a married filing jointly filer, and the taxpayer has filed at least through the 2018 tax year, then you’ll be eligible for at least a partial payment.  The full payments are $1,200 for adults and $500 for dependents, and all US citizens, even those who aren’t required to file a tax return, based on their level of taxable income, are eligible.  While many taxpayers have already received their payments, many have not because they haven’t been using their bank accounts to receive income tax refunds from the IRS in the past. If this is the case then you can either update your banking info on the IRS’s website, or wait until your payment is mailed to you later this year.  If neither of these methods work for you, and you still haven’t received your payment by the end of the calendar year then the method of last resort is to receive your payment as a credit on your 2020 tax return, which while perhaps not ideal, is an available option. To recap, while the program was intended to be simple and efficient in design to send out funds to as many taxpayers as possible, there are some complexities in the qualifications, and the method of payment that have delayed the release of funds, so be patient and know that if you are eligible you’ll eventually receive your payment, or credit, over the next several months. Please let us know if you have any questions and thank you for your support during these challenging times!  Mike and Staff