Update: April 24, 2020 11:30 am – The IRS/Treasury will be sending an Electronic Payment file to Leominster Credit Union (LCU) and other financial institutions for the next round of stimulus payments issued. Information from the Treasury indicates that payments will be received on April 29, 2020. If you have checked your payment status and your payment has been sent to a now closed account, or an account on which the account number has changed, the deposit will be automatically rejected and the IRS will issue a paper check to the address they have on file. This is generally the address on your most recent tax return or as updated through the United States Postal Service (USPS). You do not need to call the IRS to change your payment method or update your address at this time.
Update: April 21, 2020 – Beginning Saturday April 18th, 2020 The U.S. Department of the Treasury’s Bureau of the Fiscal Service started printing and mailing economic impact payment checks. The initial checks will have a pay date of April 24, 2020, and weekly thereafter. Checks will be mailed daily, starting on Saturday, April 18, 2020, and continue until all checks are delivered. Estimated check volume is approximately 5 to 7 million checks per week.
The Treasury check, for economic impact payments, will have identifying text in the memo field stating “Economic Impact Payment” on the first line and the President’s name on the second line. The checks will be signed by a Fiscal Service disbursing official.
Stimulus Payments Explained – (The latest information regarding this can be found at IRS.gov. )
One of the components of the recently passed CARE Act stimulus plan is the distribution of stimulus checks. It is anticipated that stimulus checks could start to be sent out beginning early to mid-April. The following information is information from the IRS.gov website.
As new information surrounding the federal stimulus payments is available, the I.R.S. website is posting regular updates and is a great resource, IRS.gov. Based on the current information available, here are some facts about stimulus payments as of April 7, 2020.
When will checks arrive?
If you’ve filed taxes electronically and the IRS has your direct deposit info, you could receive their payments as early as April 13 – 17. Note this is an estimate.
Stimulus payments will be directly deposited to the account the IRS has on file for a household based on the account to which the last Refund Check was deposited. If there is no account on file, the IRS will send a check to the home address. Distribution of printed checks may take up to 20 weeks anticipating starting around May 4, 2020. Note this is an estimate.
The House Ways and Means Committee memo says that check distribution could work like this (reference: Forbes)
- Week of April 13, 2020: 60 million checks distributed through direct deposit
- Week of May 4, 2020: The IRS will start sending paper stimulus checks.
- Each week thereafter: Approximately 5 million paper checks will be issued each week.
Who is eligible for the economic impact payment?
Tax filers with adjusted gross income up to $75,000 for individuals and up to $150,000 for married couples filing joint returns will receive the full payment.
For filers with income above those amounts, the payment amount is reduced by $5 for each $100 above the $75,000/$150,000 thresholds.
Single filers with income exceeding $99,000 and $198,000 for joint filers with no children are not eligible. Social Security recipients and railroad retirees who are otherwise not required to file a tax return are also eligible and will not be required to file a return.
Eligible taxpayers who filed tax returns for either 2019 or 2018 will automatically receive an economic impact payment of up to $1,200 for individuals or $2,400 for married couples and up to $500 for each qualifying child.
What amount will be paid?
- Single taxpayers making $75,000 or less, will get $1,200.
- $500 will be paid in addition for every qualifying child age 16 or under.
- Married couples with no children earning $150,000 or less will receive a total of $2,400.
You can look up your anticipated check amount on this calculator. (Reference CNN)
How stimulus funds will be received
Stimulus payments will be directly deposited to the account the IRS has on file for a household based on the account to which the last Refund Check was deposited. If there is no account on file, the IRS will send a check to the home address. If you receive a check by mail, it can be safely deposited to your Leominster Credit Union Account through the Mobile Deposit/Mobile Banking.
Payment recipients: Watch for an IRS Letter
For security reasons, the IRS plans to mail a letter about the economic impact payment to the taxpayer’s last known address within 15 days after the payment is paid. The letter will provide information on how the payment was made and how to report any failure to receive the payment. If a taxpayer is unsure they’re receiving a legitimate letter, the IRS urges taxpayers to visit IRS.gov first to protect against scam artists.
Where can I get more information?
The IRS will post all key information on IRS.gov/coronavirus as soon as it becomes available.
The IRS has a reduced staff in many of its offices but remains committed to helping eligible individuals receive their payments expeditiously. Check for updated information on IRS.gov/coronavirus rather than calling IRS assistors who are helping process 2019 returns.
Important: Avoid Scams related to economic payments – COVID-19
The IRS urges taxpayers to be on the lookout for scam artists trying to use the economic impact payments as cover for schemes to steal personal information and money. Remember, the IRS will not call, text you, email you or contact you on social media asking for personal or bank account information – even related to the economic impact payments. Also, watch out for emails with attachments or links claiming to have special information about economic impact payments or refunds.
The IRS reminds taxpayers that scammers may:
- Emphasize the words “Stimulus Check” or “Stimulus Payment.” The official term is economic impact payment.
- Ask the taxpayer to sign over their economic impact payment check to them.
- Ask by phone, email, text or social media for verification of personal and/or banking information saying that the information is needed to receive or speed up their economic impact payment.
- Suggest that they can get a tax refund or economic impact payment faster by working on the taxpayer’s behalf. This scam could be conducted by social media or even in person.
- Mail the taxpayer a bogus check, perhaps in an odd amount, then tell the taxpayer to call a number or verify information online in order to cash it.
Reporting Coronavirus-related or other phishing attempts
Those who receive unsolicited emails, text messages or social media attempts to gather information that appear to be from either the IRS or an organization closely linked to the IRS, such as the Electronic Federal Tax Payment System (EFTPS), should forward it to email@example.com.
Taxpayers are encouraged not to engage potential scammers online or on the phone. Learn more about reporting suspected scams by going to the Report Phishing and Online Scams page on IRS.gov.
Official IRS information about the COVID-19 pandemic and economic impact payments can be found on the Coronavirus Tax Relief page on IRS.gov. The page is updated quickly when new information is available.