In response to the COVID-19 pandemic, Congress recently passed legislation authorizing stimulus payments to most Americans. These payments, called Economic Impact Payments, are being processed by the Internal Revenue Service (IRS) at the current time. Many people have questions about these payments, so this FAQ has been assembled to help you find answers.
Is the Economic Impact Payment considered to be taxable income?
No, this payment is not considered “income” by the IRS and you will not need to pay income tax on it. This payment will not effect your refund, or increase the amount you owe when you file your 2020 tax return in 2021. This stimulus payment will also have no impact on your eligibility for other federal assistance programs that use income to determine eligibility.
How can people who receive a Form SSA-1099 or RRB-1099 check their payment status?
Taxpayers can use the IRS Get My Payment tool to check on the status of their stimulus payment. This will require you to verify your identity by answering a set of security questions.
If my bank account information has changed since the last time I filed a tax return, how do I update my direct deposit information?
The Get My Payment tool at irs.gov does not allow you to change your direct deposit information. This is a security precaution to prevent these payments from being stolen by changing this information.
If the IRS sends your payment using the bank direct deposit information from your most recent tax return and the bank account information is now invalid, the bank will notify the IRS and reject the electronic transfer. The IRS will then mail you a check as soon as they are able, to your last known address. The Get My Payment tool will then be updated to reflect the date on which this check was mailed. Please note that the IRS says it may take up to 14 days to receive the payment after it’s been mailed.
Where can I get more information?
If you are required to file a tax return, you are encouraged to file electronically. You can find a tax professional in your area by searching our directory of tax firms.
If you are not required to file a tax return, you may use the Non-Filers: Enter Payment Info Here tool and submit your information to the IRS to receive an Economic Impact Payment. This online tool should only be … Continue reading