As part of the CARES Act passed March 2020, the IRS will be making an Economic Impact Payment (also referred to as a stimulus payment) over the next several weeks to qualifying taxpayers. The maximum amount of the payment is $1,200 for a single taxpayer, $2,400 for a married couple filing a joint return, and an additional $500 for each child dependent age 17 and under. The payment is reduced ratably based on Adjusted Gross Income from either the 2018 or 2019 tax return, whichever is filed most recently, starting at $75,000 for single individuals and $112,500 for Head of Household filers, and $150,000 for married couples filing jointly.
In general, taxpayers do not have to take action to receive the payment. If you have filed a 2018 or 2019 return that included banking information, the payment will be direct deposit to the account listed. If no banking information is included, checks will be mailed to the address of record. Taxpayers who do not file a tax return but do receive Social Security benefits will receive them through the same method.
Taxpayers who have not filed a return for either year and do not receive Social Security benefits may have to take action to notify the IRS of how to remit payment. See sidebar.