JACKSONVILLE, Fla. – The much-awaited stimulus payouts surpassed a major milestone on its way into millions of bank accounts. According to an internal plan circulated by IRS Treasury Secretary Steven Mnuchin, the first round of payments were set to be processed Thursday.
The first payout is estimated to cover at least 50 million Americans.
Americans likely won’t begin to see direct payments from the coronavirus stimulus bill until at least April 13, and it could take 20 weeks for all the checks to be mailed, Trump administration officials told lawmakers, according to a House Democratic memo obtained by CNN.
Will you get paid?
About 90% of Americans would be eligible to receive full or partial payments, according to estimates by the Tax Policy Center. Lawmakers set aside $250 billion for the so-called recovery rebates.
Qualifying income levels will be based on 2019 federal tax returns, if already filed, and otherwise on 2018 returns.
Will you get paid soon?
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. Those will be mailed at an undetermined date.
Groups of checks would be then mailed over the next several weeks. It could take until May or August for recipients to see the money.
To ensure you receive your money as soon as possible, make sure the IRS has your bank account information on file. A direct deposit option will serve you sooner than a physical check.
How much will you get paid?
Under the plan as it was being negotiated, single Americans would receive $1,200, married couples would get $2,400, and parents would see $500 for each child under age 17.
Anyone earning up to $75,000 in adjusted gross income and who has a Social Security number will receive a $1,200 payment. That means married couples filing joint returns will receive the full payment — $2,400 — if their adjusted gross income, which what you report on your taxes, is under $150,000.
The payment steadily declines for those who make more. Those earning more than $99,000, or $198,000 for joint filers, are not eligible. For heads of household with one child, the benefit starts to decline at $112,500 and falls to zero at $146,500.
Parents will also receive $500 for each qualifying child.
What do you need to do?
Most people don’t need to do anything to get the money. But some populations who don’t typically file returns — including senior citizens and low-income people who might not traditionally file tax returns — may be confused.
The IRS and Treasury have updated their guidance on how to ensure you get paid.
For more information, click here.