News from Representative Larson

Dear Friends-

The recently enacted Coronavirus Aid, Relief and Economic Security (CARES) Act, includes direct cash payments to help Americans pay for food, medicine and other essentials during this public health crisis. The Economic Impact Payment program will provide a single, one-time payment of $1,200 per adult and $500 per child under the age of 17.  Most Americans will receive a payment, including workers, the unemployed, retirees (including Social Security beneficiaries), and disabled individuals.

You will receive an Economic Impact Payment if:

  • You are a legal U.S. resident with a Social Security number
  • Could not be claimed as someone else’s dependent; and
  • Your income is below certain limit (see below).

Here are some frequently asked questions my office has received on direct payments:

How much will I get? 

The CARES Act provides a single, one-time payment of $1,200 per adult and $500 per child under the age of 17, up to certain income levels.  The IRS will determine what your payment will be by looking at your 2018 or 2019 tax return or Social Security data.  If you have not filed taxes for those years, see question below.

The rebate phases out above a certain level of income: 

  • For individuals, the rebate begins to phase out for those with incomes above $75,000 and fully phases out above $99,000 
  • For those filing taxes as a head of household with one child, the phase out begins at $122,500 and fully phases out above $146,500. 
  • For those filing taxes jointly with no children, the phase out begins at $150,000 and fully phases out above $198,000. 
  • For those filing taxes jointly with children, the phase out begins at $150,000. The full phaseout amount is dependent the number of eligible children. For a family with two children, the credit fully phases out at $218,000. 

 

How will payments be delivered? 

The IRS will be depositing the payment in your bank account or you will receive a check in the mail from the IRS. 

If you have given the IRS your bank information and permission to deposit funds since January 2018, or if you are a Social Security beneficiary, it will be delivered via direct deposit.

If the IRS does not have your bank account information, you will be able to give them your direct deposit information on a soon to be introduced IRS website. Check irs.gov/coronavirus for more information. If you do not do this, you will receive a physical payment in the mail.  Payments made via direct deposit will occur sooner than payments via paper check.

If you do not receive Social Security and have not filed taxes since 2018,  visit here to submit information to the IRS to receive payment.

I didn’t make enough money to file taxes in 2018 or 2019, will I be eligible? 

Yes, every legal resident including Social Security beneficiaries within the income range with a Social Security number is eligible. 

If you are required to file a 2019 tax return, the IRS recommends doing so as soon as possible, which will give them up to date information and allow them to best assess what amount you should be paid. 

If you are a low-income taxpayer, veteran, or another individual who does not need to file an annual tax return, you will need to submit information to the IRS here. This is not a tax return and will not result in owing taxes.

When will I receive my payment? 

The Treasury Department has announced that direct deposit payments for tax-filers will be distributed to bank accounts the week of April 13th. Direct deposit payments for Social Security beneficiaries will be delivered before the end of April.

Paper checks will begin to be mailed out towards the end of April. Please be aware that the IRS is only able to print 5 million checks per week, meaning it may take up to 20 weeks for you to receive a paper check. Filers are urged to update their direct deposit with the IRS when the new portal is released to ensure a quick delivery. Please check irs.gov/coronavirus for updates.

What happens if I have had a loss of income since my last tax returns and am now in the range for payment? 

You will be eligible for this credit when you submit your 2020 tax return.

What happens if I have moved since I last filled out my taxes? 

You will be able to update your address and direct deposit information on a soon to be introduced IRS online portal. Please check irs.gov/coronavirus for updates.

Will I have to pay taxes on these payments? 

No, they are considered tax refunds and are not subject to tax. 

I’m 17-24 years old and my parents listed me as a dependent. Will either of us receive anything? 

No, the $500 rebate per child is for those under age 17.  If you are a 17-24 and your parents claim you as a dependent on their tax return, you are not eligible for any Recovery Rebate and your parent is not eligible for the additional $500 in rebate funding. I am a cosponsor of the All Dependent Children Count Act (H.R. 6420) which would make sure all dependents count when allocating the $500 child rebate. 

I was contacted about claiming money from the government as part of Coronavirus relief. Is this real? 

At this time, no government agency, including the IRS, has done outreach to request information related to the program. Do not give personal information to anyone contacting you claiming otherwise. For more information about how to know if a government program is real, or to report a potential scam, go IRS.gov/coronavirus. 

If I receive a federal benefit that’s limited by income levels, will taking this benefit impact my eligibility? 

No, this payment is considered a tax refund, and so it will not be considered income for determining eligibility for federal programs. 

Will undocumented individuals or those without a Social Security number receive an Economic Impact Payment?

No. Only citizens or legal residents with a Social Security number are eligible for an Economic Impact Payment.

 

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Regards,
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John B. Larson
Member of Congress

 

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