CARES Act Update

Economic Impact Payment Information

** PLEASE NOTE: INFORMATION IS CHANGING FREQUENTLY AND IS SUBJECT TO CHANGE**

Last updated: Apr. 7, 2020 9:22 am

On Friday, March 27, 2020 the President signed the CARES Act providing Coronavirus relief to individuals, businesses, the health care industry, and state & local governments.

This page will be updated as more information is available about how the stimulus payments will be issued to taxpayers. Visit the IRS Coronavirus Tax Relief page for the latest information.

Answers to Common Questions

 

I paid for tax preparation using Santa Barbara TPG this tax season. How will I receive my Economic Impact Payment?

The IRS will issue direct deposits to taxpayers that received a direct deposit.

An IRS-issued check will be mailed to taxpayers that received a check printed from their tax professional’s office or a debit card issued through Santa Barbara TPG.

The IRS and Treasury Department are developing a website for taxpayers who are expecting a check, where they can provide their bank account information in order to receive their Economic Impact Payment by direct deposit. According to this message on the IRS website the IRS will notify taxpayers when more details are available. We will update this page when more information is available.

 

What do I need to do to receive a stimulus check?

There is nothing to do if you filed a tax return for 2018 or 2019 or if you have received Social Security or veteran’s benefits in 2018 or 2019. If you have not filed your 2018 or 2019 return the IRS recommends that you file back taxes for 2018.

 

Do taxpayers on Social Security who don’t typically file a return need to file a return?

Social Security beneficiaries who are not typically required to file tax returns do not need to file an abbreviated tax return to receive an Economic Impact Payment. Instead, payments will be automatically deposited into their bank accounts.

 

How much will I receive?

The amount you are eligible to receive is determined by your Adjusted Gross Income (AGI). The IRS will look at your 2019 return first. If you have not filed a 2019 return, the IRS will use your 2018 AGI to determine eligibility.

The stimulus plan indicates the following maximum amounts are available depending upon filing status and income. Qualified recipients will also receive $500 for each qualifying dependent under age 17.

 

Single $75,000 or less $1,200
Married filing joint $150,000 or less $2,400
Head of household $112,500 or less $1,200
Dependents under 17 N/A +$500 per dependent

Stimulus payments will start to phase out for single filers making more than $75,000, $112,500 for head of household filers and $150,000 for joint filers. The stimulus payments will phase out entirely at $99,000 for singles, $136,500 for head of household, and $198,000 for joint filers.

 

When will the Economic Impact Payment be issued?

On March 2nd it was reported that the IRS plans to begin issuing payments as early as April 9th, reaching taxpayer bank accounts the week of April 12th.

 

Be on the alert for Economic Impact Payment scams

 

Scammers and identity thieves are already taking the opportunity to prey upon taxpayers with phone calls, text messages and emails. Here are some answers to common questions related to fraud. Victims or targets of Economic Impact Payment scams should report it immediately to the Federal Trade Commission at www.ftc.gov/complaint.

April 2, 2020 IRS news release about Coronavirus-related scams

 

Will the IRS call me asking for my bank account information?

No, the IRS and other government agencies will never call asking for your Social Security Number (SSN) or banking information. Do not provide your SSN or bank account information to anyone calling you and claiming to be from the IRS or another government agency.

 

Will the IRS text or email me asking to verify my bank account information?

No, please beware of phishing schemes from identity thieves claiming to be the IRS or another government agency. Do not click on a link or email if you do not recognize who it is from. The IRS will never text or email you asking to provide your bank account information or verify your bank account information.

 

Am I required to sign up or pay a fee in order to receive an Economic Impact Payment?

No, please beware of phishing schemes from identity thieves claiming to be the IRS or another government agency. You are not required to sign up or pay a fee in order to receive an Economic Impact Payment. Please visit the IRS website for more details.

 

Will I be required to complete a form to qualify for an Economic Impact Payment?

Taxpayers are not required to complete a form, but according to the IRS website, “In the coming weeks, Treasury plans to develop a web-based portal for individuals to provide their banking information to the IRS online, so that individuals can receive payments immediately as opposed to checks in the mail.” This portal is being made available to taxpayers that did not receive a direct deposit. The IRS will provide more details as they are available.

 

Will the IRS mail me a notification?

The IRS is required to mail a written notice to taxpayers no later than 15 days after distributing an Economic Impact Payment.  This notice to the taxpayer will indicate the payment amount, whether the payment was mailed or direct deposited, and a phone number to call if the taxpayer did not receive the payment. The payment should be received  before any communication from the IRS is received by mail.