As part of the $2 trillion stimulus package, eligible taxpayers who filed tax returns for either 2019 or 2018 will receive a stimulus check of up to $1,200 for individuals or $2,400 for married couples. Those who qualify for a stimulus payment get an extra $500 for each qualifying child under 17. The economic impact payments will either be delivered via direct deposit or mailed. According to the IRS, payments will be distributed automatically to most people starting next week. You can read my comprehensive list of emergency financial resources on Be Remote Consulting here.
More than 16 million Americans filed for unemployment in the past three weeks!! I decided to write this blog post to inform concerned citizens how to check if they qualify for the $1,200 Stimulus Check and easily enter their bank account information to receive their stimulus checks faster via direct deposit from the Internal Revenue Service (IRS).
About 90% of Americans will be eligible to receive full or partial payments, according to estimates by the Tax Policy Center. The first wave of payments will be issued to people who have already given their bank account information to the IRS and Social Security beneficiaries who filed a federal tax return with direct deposit information. The next wave of money will be paid no later than the week of April 20. The third and final round is dedicated to payments being made through check.
All of this theoretical information is necessary but not sufficient. I was still thoroughly confused by this unnecessarily complicated process. Fortunately, the bureaucratic maze is being streamlined thanks to a new online tool developed by TurboTax. I wanted to figure out a way to enter my payment information to receive direct deposit since I’m a US expat living in Thailand during the Coronavirus outbreak, currently under quarantine at a hostel in Bangkok.
The tax-preparation company now has a “stimulus registration” page where low-income Americans can submit their direct-deposit information or mailing address to receive their stimulus payment. The product is free to use and includes a stimulus-payment calculator to find out exactly how much you’re getting.
Find TurboTax’s registration portal here, and scroll down for instructions on how to use it.https://www.businessinsider.com/personal-finance/turbotax-online-portal-stimulus-check-direct-deposit-2020-4
However, this is not a cure-all solution since you’re still required to file your taxes electronically through TurboTax in order to enter your bank account information for direct deposit or home mailing address to receive a paper check. Side note: Direct deposit costs the nation’s taxpayers more than $1 for every paper refund check issued, but only a dime for each direct deposit made. You can choose to pay the mandatory $80 filing fee using your federal income tax return. However, I chose to file for a tax extension until July 15th since I’m currently living abroad in Thailand and unfortunately qualify for $0 in federal income tax return this year.
Therefore, I was very interested in figuring out a solution to circumvent TurboTax altogether and e-file for free directly through the IRS.
To get their stimulus payments, non-filers have to file a tax return. But now they can use the new online tool, developed with the IRS-backed Free File Alliance, to answer a few basic questions to get their money. The tool is based on the Free File Fillable forms available on the IRS website.
To get to the portal, go to IRS.gov and look for “Non-Filers: Enter Payment Info Here.” The link will take people to a page where they have to provide such information such as their Social Security number, address, and dependents. Non-filers can also provide direct deposit information, which will reduce the time it takes to receive their money.https://www.washingtonpost.com/business/2020/04/13/irs-is-launching-new-online-tool-people-track-their-1200-tax-stimulus-payments/
On Friday, the IRS released its own tool for non-filers, which can be found here, to give people with no tax-filing obligation, including veterans and Supplemental Security Income (SSI) recipients the opportunity to provide their direct-deposit information for quicker payment. According to the IRS, in order to qualify for the Economic Impact Program, you must have a valid social security number, not be claimed as a dependent of another taxpayer, and have adjusted gross income (AGI) that did not exceed $12,200 ($24,400 for married couples) in 2019.
You can easily figure out whether you qualify for the 2020 Stimulus Check and calculate how much you can expect using the free online tool available at TurboTax.com.
Tax payers who have set up direct deposit will start receiving checks on April 13. Paper checks will be mailed out beginning May 4 to people without direct deposit information on file with the IRS, according to the government’s latest estimates. If you expect to receive your 2019 tax refund check in the mail, then you will also receive a relief check in the mail, but probably not until May at the earliest, she says. Recognize, though, that because the office that issues paper checks can process about 5 million checks per week, you may be waiting up to 20 weeks, or nearly 5 months, to receive a payment by mail.https://grow.acorns.com/how-to-get-your-coronavirus-stimulus-check-fast/
Which groups of people won’t qualify for the stimulus check?
- High-wage earners: Americans who earn more than $75,000, or $150,000 for a joint return. The payments phase out completely for single filers with incomes exceeding $99,000, $136,500 for head of household filers with one child and $198,000 for joint filers with no children. People who earned more than $99,000 last year but who are unemployed in 2020 won’t be eligible for a check this year.
- Students age 17 or older don’t qualify for a stimulus check if their parents or guardians claim them as a dependent. Their parents won’t get the $500 per child payment either. That applies only to children ages 16 and younger.
- Elderly and disabled people: Disabled adults are eligible for a stimulus check as long as no one else claims them as a dependent. If so, they don’t qualify.
- Some immigrants: Legal immigrants with green cards or H-1B and H-2A work visas are eligible for a check. Non-resident aliens, temporary workers and immigrants in the country illegally are not.
- Newborn babies: Parents of babies born in 2020 will have to wait until next year to receive their $500 payment for the child.
- Low-income tax non-filers: Low-income people who haven’t filed taxes in the past two years are eligible for a check, but millions of them won’t get one unless they take an extra step.
Hopefully this article helps you navigate this complicated process! Please share with anyone who would find this information useful during these challenging times. Who’s ready for Universal Basic Income (UBI) for every marginalized American citizen?