April 14, 2020

AZ Business Magazine

IRS deposits first wave of stimulus payments

For the many struggling through our current crisis, help is on the way. The Internal Revenue Service said Saturday it sent out the first wave of stimulus payments to Americans. The checks are part of the $2.2 trillion economic relief package passed by Congress in March in response to the coronavirus pandemic.

“#IRS deposited the first Economic Impact Payments into taxpayers’ bank accounts today. We know many people are anxious to get their payments; we’ll continue issuing them as fast as we can,” the IRS wrote Saturday on Twitter

CARES Act stimulus payments: What to know and what to watch for

Under the economic relief package, individuals will receive up to $1,200 and couples will receive up to $2,400 — plus $500 per child. But payments start phasing out for individuals with adjusted gross incomes of more than $75,000. The amount will then be reduced by $5 for every additional $100 of adjusted gross income, and those making more than $99,000 will not receive anything. The income thresholds would be doubled for couples.
For those who haven’t filed an income tax return for either 2019 or 2018, the IRS urges them to do so quickly, including those who don’t normally need to file a tax return. That includes individuals who earned less than $12,200 in 2019 and couples who earned less than $24,400.
Meanwhile, the IRS said it expects to start issuing paper checks the week of May 4, according to the House Democratic memo.
The paper checks will be issued at a rate of about 5 million per week, the memo says. Individuals with the lowest income, based on adjusted gross income, will receive their checks first.