Key Facts About IRS Economic Impact Payments (EIPs) – Did You Know?

Jun 17, 2020 By Evan Nielsen In Business, Other, Taxation No Comment

Although the IRS has sent out over 100 million Economic Impact Payments (also called stimulus payments), some Americans are still waiting to receive their payments. Even if you have gotten your Economic Impact Payment (“EIP”), you may have questions about how the money affects your income or taxes. The IRS recently issued answers to some of the most common questions about EIPs, including:

  • EIPs are NOT taxable income. You do not need to report your EIP on your 2020 tax return or pay tax on it, and it will not affect your eligibility for government programs with income limits.
  • If you are not required to file a federal tax return but receive Form SSA-1099 or RRB-1099 for Social Security or Railroad Retirement benefits, you can use the IRS Get My Payment portal (see below) to check on the status of your EIP.
  • If your direct deposit information has changed since you last filed a tax return and received a refund, you can NOT use the Get My Payment portal to provide the IRS with new account information. If your old account number is no longer valid or the account has been closed, the bank will return your EIP to the IRS. The Get My Payment portal will then be updated to show that you will receive a check in the mail, with an estimated delivery date.
  • If you are a U.S. citizen living abroad, you qualify to receive an EIP as long as you do not exceed the income limit, are eligible to file IRS Form 1040 or 1040 SR, have a valid Social Security Number (SSN) and cannot be claimed as a dependent by another taxpayer. The basic income limit is $99,000 for individuals or $198,000 for joint filers.

Finally, the IRS reminds all Americans to stay alert for scams related to EIPs. You should ONLY provide your private information to the IRS through the official Get My Payment portal. Anyone who requests your bank or tax information in order to help you get your EIP, or asks you to sign your EIP check over to them, is a scammer. Hang up or delete the message immediately.

IRS Get My Payment Portal: https://www.irs.gov/coronavirus/get-my-payment

 

Disclaimer: For informational purposes only. Does not constitute legal, financial, or other advice. Consult with a professional before taking any action.