What are Economic Impact Payments?
Since the pandemic, we have been introduced to several new ideas and income credits. The economic impact payments are a new phrase that we have been introduced to. So what exactly are economic impact payments?
Economic Impact Payments Defined
Economic impact payments have another name that most Americans know, “stimulus checks” or “recovery rebates.” The Corona Virus Aid Relief and CARES Act introduced these economic impact payments.
Congress helped pass this act to help Americans with the stress and debt that the Corona Virus has caused. Since the pandemic, we have lost jobs, families, homes, and more.
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The Act has helped the United States economy stay afloat as well. The stimulus payments have assisted many Americans, but some have not gotten any help.
The stimulus checks were given to Americans based on their 2019 tax returns. If you did not file the 2019 return, more information is listed below.
How Do I Get the Economic Impact Payment?
Receiving payments for the stimulus checks requires a 2019 tax return filed. The bank account given upon filing your taxes will be the account that your payment will be deposited.
If you got a paper check, then you will automatically receive a paper check. When you don’t normally file taxes, you will go to the non-filers tool. If you did not file in 2019 only, utilizing the non-filers tool will get your information sent to the IRS.
You will receive your deposit information on the form. Always make sure that you double-check this information. Incorrect information could delay the payments.
If you are concerned with your payment not arriving or it is delayed, check with your bank. Most financial institutions have their websites set up to show when you will receive your economic impact payment.
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Are the Economic Impact Payments the Same as a Stimulus Check?
These are the same. The economic impact payment or stimulus checks are for tax filers who can make an adjustment gross income up to $75,000. This is for individuals, those who will file jointly, being eligible and begins at $150,000.
Most eligible taxpayers are not of requirement to do anything to get their total amount. The internal revenue service will determine your payment amount based on the last tax filing.
If you need to change or update your direct deposit information, you can do that on the IRS website. Otherwise, you will get a paper check sent to you.
The IRS will add information that everyone needs on their web page. It is IRS.gov/coronavirus.
What is the Recovery Rebate Credit?
In a news release from March 2, 2021, the IRS released a statement about the recovery rebate credit. You can find the news release here.
If you did not get your stimulus checks, the IRS states you might be eligible for the recovery rebate credit to a full amount. The requirement for this credit, filing your 2020 tax return. The IRS offers to file the 2020 taxes for free to qualify.
On the IRS website, there is also free software for individuals to file their 2020 taxes. What is different about this credit? This credit is of reflection in your tax return. This is why it is essential to file your 2020 taxes.
The worksheets on the IRS website will help you calculate what you need. It’s effortless, and some representatives can guide you through this as well.
Related Article: What is a child tax credit?
Get My Payment
The IRS has a self-checker online that verifies your check or deposit is on the way. The payment tool will help you learn about when your stimulus check will be in your deposit account.
The payment tool will also tell you when you will get your check.
You can also check and see if you are even qualified to get the economic impact payments.
Finding the amounts you are receiving for the first and second payments will be listed on your IRS online account. This way, you can determine if you are eligible for the recovery rebate credit.
You can also check any IRS letters that you have gotten in the mail. This will show you how much you were paid and the date.
When you file your 2020 tax returns, make sure that you enter the information correctly. The downfall to the recovery rebate credit is that it will decrease your last stimulus check.
After you file for 2020, you will get confirmation from the IRS regarding filing. Usually, tax returns take anywhere from 3 to 8 weeks to get a return.
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Summary
The economic impact payments are processing, and we are ready for them. The IRS determines the amount. Visit the IRS.gov website to get more information.
