NEW PROBLEM: Erroneous stimulus payments are going to the parents of children collecting social security. Most payments hit 05/28/20. The payments most likely will have to be returned. Stay tuned.
I advise not to do anything yet until the politicians weigh in... policy may change. But these are the official instructions as of today of how to return a stimulus check mailed to the deceased... click here.
CONTINUING PROBLEM: Stimulus checks to deceased taxpayers News update 04/30/2020… The U.S. Treasury Department is planning to instruct people whose deceased relatives received coronavirus stimulus payments to return the money to the federal government, according to a department spokesman. The Treasury is aware that some individuals who have recently died received the $1,200 economic impact payments and plans to issue guidance in the coming days, the spokesman said.
I advise not to do anything yet until the politicians weigh in... policy may change. But these are the official instructions as of today of how to return a stimulus check mailed to the deceased... click here.
Direct deposits to start mid-April. Rumors say they have started!
The payments are going out in waves. So don't be concerned if your neighbor received their rebate, but you didn't get yours on that same day. It's coming.
Paper checks will start going out 04/24/20 (starting with low income taxpayers).
IRS said they will set up a portal which will allow you to add or modify direct deposit information
Be careful of scammers asking for your bank account info in order to do this for you.
How much?
$1,200 for individuals
$2,400 for married filing joint
$500 for each child age under age 17 (as of what date?... most probably 12/31/19)
What adjusted gross income qualifies? (2018 1040 line 7) (2019 1040 line 8b)
Single AGI... under $75k (partial rebate available for $75k-$99k)
Married AGI... under $150k (partial rebate available for $150k-$198k)
Married-filing-separate AGI... under $75k (partial rebate available for $75k-$99k)
Head of Household AGI... under $112,500 (partial rebate available for $112,500-$146,500)
Which tax return are they looking at?
2018 or 2019 depending on the filing dates.
Other rules to qualify?
you can't be a dependent on someone else's tax return
you can't be a non-resident alien
If you have $0 income... you still qualify as long as you are not claimed as a dependent by another.
No rebate garnishment offsets... except delinquent child support. So back taxes due will not prevent you from getting the rebate.
Social security recipients... will receive rebates even if they did not file a tax return.
Does it really matter which year they use?
Maybe not. The last time they did a stimulus rebate, the advance payment was a prepayment only. After looking at your 2020 tax return next year, the IRS may decide you deserve more or have to repay some. This has not been spelled out yet.