As part of the federal government’s efforts to jolt the economy back to life amid the destruction caused by the coronavirus pandemic, the Internal Revenue Service (IRS) has started distributing stimulus cheques to millions of Americans in the amount of up to $1,200 each.
The Treasury Department reports that the first checks were delivered via direct deposit on Friday and that by Wednesday, tens of millions of people should have seen the checks appear in their bank accounts.
The Treasury Department estimates that between 50 and 70 million people in the United States will have received their paychecks through direct deposit by the 15th of April.
Those individuals who have not supplied the IRS with their bank account information will receive a paper check in the mail.
This process may take longer; however, the department has launched a portal on its website that allows certain Americans to input their direct deposit information to expedite the receipt of their cash refunds.
The cheques are being distributed by the federal government as part of a new economic stimulus plan that was passed into law last month by President Donald Trump and valued at $2.2 trillion.
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There won’t be enough money for everyone:
The purpose of the checks is to offer a cash infusion to the majority of Americans and to boost the economy amid the coronavirus crisis.
Businesses are also struggling from the economic damage caused by the pandemic, and the recovery package includes financial aid in the form of loans, grants, and tax incentives for these companies.
A one-time payment of up to $1,200 ($2,400 for joint tax returns) and $500 for each qualifying kid is available to taxpayers who meet the requirements of the new stimulus bill and have an adjusted gross income of $75,000 or less.
Those who have a low or nonexistent tax liability will also receive $1,200 (or $2,400 for combined returns).
People living in the United States with an annual income of more than $75,000, or $150,000 for married couples filing jointly, are subject to a reduction in their payments.
When a taxpayer’s annual income is more than $99,000, the payments are eliminated entirely; when the taxpayer’s income is more than $136,500 and there is one child in the family; and when the taxpayer’s annual income is more than $198,000 and there are no children in the household.
A cheque from the stimulus program is not available to everyone. A significant number of students, some elderly and disabled persons, and immigrants who do not have a Social Security number will be excluded from the program.
Because the payments are based on tax returns filed in either 2018 or 2019, parents with children born in 2020 will have to wait until the next year to receive the per-child refund.
This is because the payments are based on returns filed in either 2018 or 2019.
Possible delays:
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Experts warn that the outdated equipment used by the IRS could cause a delay in the distribution of stimulus payments worth $1,200 due to the coronavirus.
People with low incomes who did not need to file a tax return for the previous two years because they earned less than $12,000 will be eligible for a payment from the stimulus package.
They will, however, be required to give the IRS certain information for the agency to be able to calculate their rebate and determine where to send it.
The Internal Revenue Service has launched a web portal that will enable non-filers to sign up for a stimulus program.
People who don’t regularly file tax returns can visit the Internal Revenue Service website and search for “Non-Filers: Enter Payment Info Here.”
They will be able to supply information at that location, which may include their Social Security number, name, residence, and dependents.
The Internal Revenue Service will verify their eligibility with this information and then make them a payment under the stimulus package.
