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April 23, 2020 – As part of the $2.2 trillion stimulus package the CARES Act, the federal government is sending Economic Impact Payments (stimulus checks) to millions of Americans. These payments have brought up a variety of questions. Many of these questions will be answered below. If you have other questions, please reach out. We are more than happy to help get them answered.

Filing as an Individual

If you filed your taxes individually in either 2018 or 2019 and have an adjusted gross income (AGI) up to $75,000, you will receive $1,200. If your AGI is from $75,000 up to $99,000, the payment amount is reduced by $5 for every $100 above the $75,000 threshold. If you have kids, you will receive up to $500 for each qualifying child (dependent aged sixteen or younger). If you have no children and have an AGI that exceeds $99,000, you are not eligible to receive this stimulus.

Filing Jointly

If you filed your taxes jointly in either 2018 or 2019 and your adjusted gross income (AGI) is up to $150,000, you will receive $2,400. If your AGI is from $150,000 up to $198,000, your payment amount will be reduced by $5 for every $100 above the $150,000 threshold. If you have kids, you will receive up to $500 for each qualifying child (dependent aged sixteen or younger). If you have no children and have an AGI that exceeds $198,000 jointly, you are not eligible to receive this stimulus.

How Will I Get My Payment?

If you used direct deposit to receive your tax refund in 2018 or 2019, the IRS will direct deposit your stimulus check into that same account. To learn the status of your payment or to add your direct deposit information, head over to the IRS website. If you did not use direct deposit for your 2018 or 2019 tax return and do not input your information, you will receive a check in the mail. The IRS will start sending paper stimulus checks beginning April 24. Each week, the IRS plans to send approximately 5 million paper stimulus checks, starting with taxpayers with the lowest adjusted gross income. If that schedule holds, paper checks may arrive between May and September, depending on your adjusted gross income. Below is the current schedule.

Less than $20,000: May 1

Less than $30,000: May 8

Less than $40,000: May 15

Less than $50,000: May 22

Less than $60,000: May 29

Less than $70,000: June 5

Less than $80,000: June 12

Less than $90,000: June 19

Less than $100,000: June 26

Less than $110,000: July 3

Less than $120,000: July 10

Less than $130,000: July 17

Less than $140,000: July 24

Less than $150,000: July 31

Less than $160,000: August 7

Less than $170,000: August 14

Less than $180,000: August 21

Less than $190,000: August 28

Less than $198,000: September 4

Remaining checks: September 11

How do I receive my economic impact payment more quickly?

If you did not include your direct deposit information on your 2018 or 2019 federal income tax return, don’t worry. There’s good news for you. On April 17, the IRS released a new online tool entitled Get My Payment, which will also enable you to input your direct deposit information to get your stimulus check faster. This tool will also give you information about the current status of your payment, the type of payment you are currently set up to receive, and whether more information is needed.

If you encounter an error – Payment Status Not Available – while entering your information, there are several possible reasons.

  • First, you may not qualify for a stimulus check. The most common reason is that you earned too much income in 2018 or 2019.
  • Second, the IRS may still be processing your information. For example, it is possible that the IRS has not finished reviewing your tax return or incorporating your information into the Get My Payment tool.
  • Third, if you receive federal benefits such as Social Security, veteran’s, disability, or others, the Get My Payment tool will not show you the status of your stimulus check or enable you to input your direct deposit information.

The IRS says that they will update this website once daily overnight. If you are seeing an error, check back the next day to see if there is a change in status. No changes will be made during the day.

Will I have to pay taxes on the check?

No. If you qualify for $1,200, you’ll receive the full $1,200. No taxes will be deducted. The payment is a tax credit and is not treated as income.

For more information, visit the IRS Newsroom page or the IRS Coronavirus page. These resources are updated frequently with new information. To read more about Decorah and Cresco Bank and Trust’s response to the pandemic, visit our COVID-19 Information Center.

Posted in COVID-19 by Decorah Bank on April 23, 2020.

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