We frequently answer questions regarding the Economic Impact Payments (EIP), or stimulus checks. In order to provide you an easy to access resource, we’ve compiled a number of those questions and answers here. If you have additional questions that aren’t addressed here, contact us.
Who qualifies for an EIP?
Your eligibility to receive a benefit check will be determined by your adjusted gross income (AGI) on your last filed tax return (2018 or 2019) and your dependent status.
- Individuals with AGIs of $75,000 or less will receive a one-time payment of $1,200. That $1,200 will be reduced $5 for every $100 in income above $75,000 up to the limit of $99,000.
- Married couples with AGIs of $150,000 or less will receive $2,400 in checks with the benefit reduced by the same $5 per additional $100 of income above $150,000 up to a maximum of $198,000.
- Individuals filing as head of household will be eligible for a $1,200 check if their AGI is $112,500 or less. The benefit will be phased out as above until they reach an AGI of $136,500.
Parents/guardians of children under the age of 17 will also receive $500 for each child. That means that if you have a child 17 or older that you still claim as a dependent (think college student or high school senior) on your tax return, you will not receive any benefit for them.
How much will my EIP be?
There are many calculators available on the internet to determine your projected payment, but one of the easiest to understand/use is found here at AARP.
When will I get my EIP?
If your banking information is on file with the IRS, you could receive your payment by direct deposit as early as the week of April 13th. If your banking information is not on file, you can expect to receive your paper check later this summer.
If you’d like to track the status of your payment, you can use this website created by the IRS to get updates.
Can I give my banking information to the IRS to get my EIP faster?
Yes. Head to the “Get My Payment” page that the IRS recently launched to provide your information.
The IRS has old banking information for me. What should I do?
Once the “Get my Payment” application is available, update your banking information there.
I don’t want to give the IRS my banking information, but I need to update my address. What should I do?
Complete Form 8822 and submit it to the appropriate address listed on Page 2. Expect processing of the form to take 4-6 weeks.
I’m currently receiving Social Security / Railroad Retirement and do not file a return. What do I need to do to get my EIP?
You don’t need to do anything. You’ll receive your EIP automatically assuming you meet the normal requirements.
Is the EIP taxable income?
No. The EIP is an advance of a refundable tax credit on this year’s (2020) tax return. If you weren’t eligible to claim the EIP based on your 2018 or 2019 tax return but are eligible based on your future 2020 return, you’ll be able to claim your benefit next filing season. You will not have to pay tax on the EIP, nor will you have to give it back.
Damian is the lead Financial Concierge on Your Money Line, the financial help line serving all Pete the Planner® Financial Wellness clients. Damian is a CERTIFIED FINANCIAL PLANNER™ professional and loves answering your money questions. Despite sharing a last name and sense of humor, Damian and Pete are not related.