Another Round of Stimulus Checks...

Details are sketchy, but it looks like $600 checks per individual are coming, with $600 for dependents under 17 vice the $500 from before.

Probably will be sent out in a similar manner to the last set, and if you ultimately got the old ones, especially via direct deposit, you should be good for this set.

They should be coming very soon, as early as next week (just after Christmas).

Outstanding questions abound. For me, I am wondering if these will be an advance on 2020 taxes like the old ones, or an advance on 2021. The information is probably out there, but I'm going to give it a day or two to get settled before I really dig in to it.

Getting a Stimulus Check When You Didn't Direct deposit a Refund in 2019 (or 2018)

The IRS "Get Your Payment" app is live: Access by clicking HERE

UPDATE (5/12): The IRS says people have until noon on 5/13 to update direct deposit information. I assume this applies to people who filed a while ago and that recent filers will have more time.

You use this app if you filed a 2018 or 2019 tax return, but did not have a REFUND direct deposited into your account. If you OWED...this is the app for you.

You can also use the app to get a status of your payment, even if you expect it to be deposited normally.

The non-filer app is on the same page, use that one if you didn't file a 2018 or 2019 return, and you don't get Social Security (unless you get Social Security and have dependents or a spouse who do not).

To use the app, you click on the blue "Get My Payment" button.
Enter the primary taxpayer's SSN, birthday (I included the slashes and it worked) and the address from the last tax return filed. Make sure the address matches the return exactly - specifically - make sure to abbreviate or not abbreviate Rd, Street, etc as it appears on the return.
This will give you the status of your payment and tell you if the IRS needs direct deposit information. It doesn't appear that you can UPDATE direct deposit information if it has changed.
To provide direct deposit information, you enter the Adjusted Gross Income from your 2019 return (or 2018 if 2019 not filed), indicate if it was a refund or balance due on that return, and provide the amount of the refund or balance due. You enter your routing and account number twice, and then the IRS confirms that your deposit information has been updated.

Not sure how long it takes to get the deposit after this...

Filing A Tax Return When Not Required In Order To Get A Stimulus Check

The IRS is going to send stimulus checks based on a 2019 or 2018 tax return. You might need to file a tax return in 2019 to get your stimulus check. Here are a few scenarios where it might be required and all of these assume you don't already have a 2018 tax return that has proper information for your income and direct deposit information:


Instead of doing the $1 returns below, the IRS now has a free non-filer system available by clicking HERE.




1. You made too little income in 2019 to require a tax return and are not claimed as a dependent in 2019. In this case, prepare a tax return using your income documents and provide direct deposit information for the refund. If the return says it cannot be filed due to no income, enter $1 on a 1099INT form (bank interest) and put "Stimulus Payment" as the bank name.
2. You receive Social Security, but your spouse does not receive Social Security or you have dependents. In this case, file a tax return (jointly if married) claiming all dependents and including the Social Security 1099 in the return. Enter $1 on a 1099INT form (bank interest) and put "Stimulus Payment" as the bank name. Obviously provide direct deposit information for the zero tax return.
3. You have no reportable income and are not claimed as a dependent. File a tax return and enter $1 on a 1099INT form (bank interest) and put "Stimulus Payment" as the bank name. Obviously provide direct deposit information for the zero tax return.


You don't need to file a return to get your stimulus if you, and your spouse, if married, receive Social Security (or Railroad retirement) and have it direct deposited and have no dependents.


Most of the scenarios above will qualify for free filing using online software and many professional tax preparation companies are offering some of these tax returns fee free. You should NOT file a state return unless there is sufficient refund to justify the fees (assuming you don't have a state filing requirement, which you shouldn't if you're in need of this post). A state tax return is NOT required to get the stimulus payment.

Coronavirus Stimulus Checks

This is the post everyone wants to read.
How much am I getting and what do I need to do?

For most people, the answer is $1200 per taxpayer and spouse (each) and $500 for each dependent under age 17 and you don't need to do anything. Specifically, if you filed a 2019 tax return, made less than $75,000 filing Single or Married Filing Separately, $112,500 Head of Household, $150,000 Married Filing Jointly, and had direct deposit to an account that is still active, you will be getting a deposit in short order and don't need to do anything. If the last tax return you filed was 2018, and the above limits were met, you also will get the payment and don't need to do anything.

Who won't get a check:
People 17 or older who are claimed as a dependent.
Single or Married Filing Separately taxpayers who made more than $99,000 and no children under 17.
Head of Household taxpayers who made more than $136,500 and had no children under 17.
Married Filing Joint taxpayers who made over $198,000 and had no children under 17.

If you don't meet the criteria of the previous two paragraphs, use the calculator from H&R Block to see what you get: https://www.hrblock.com/coronavirus-tax-impact/calculator/

Who needs to do something:
People who did not provide direct deposit information on their latest tax return. This includes people who owed, regardless of if they used direct debit. The IRS has provided a portal for updating direct deposit information to get your check faster, otherwise it can take up to TWENTY weeks to get your check. The IRS will prioritize lower incomes for check mailing. The "Get My Payment" portal is prominently displayed on irs.gov. On 5/12, the IRS said filers had until noon on 5/13 to update direct deposit information to avoid getting a check. I assume this does not apply to people who filed in the last couple of weeks.
People who did not file a 2018 or 2019 tax return. File a return as soon as possible to get your tax return unless you receive Social Security and have it direct deposited AND you have no dependents and your spouse also receives Social Security. If not, you might want to file a "simple" return which the IRS says to do using $1 of interest labelled as "Stimulus Payment" as if it was received on a 1099INT. Click HERE for instructions.
People who filed a 2018 tax return and made too much money to qualify, or who have kids born in 2019. File a 2019 tax return to make sure you get the full amount of the check.
People who have closed or changed the bank account to which their last tax return was directed: The IRS says it will provide a portal for updating direct deposit information. I will provide details when the IRS provides it.
People without a bank account who have moved: Update your address with the IRS using Form 8822 ASAP!

What if you aren't required to file and don't receive Social Security: You might want to file a "simple" return which the IRS says to do using $1 of interest labelled as "Stimulus Payment" as if it was received on a 1099INT. I will have instructions for this in a separate post shortly...check the Master Index to find it. Alternatively, you might qualify to file a tax return if you have a W-2. In this case, get on it and file. I believe H&R Block is planning on filing these for free, even using an office (via drop-off or online approval in most cases). If you have only non-taxable income such as VA disability, you need to file a "simple" tax return. Click HERE for instructions.

What to do if you owe for 2019 and haven't filed: File your tax return ASAP and then use the forthcoming portal to proved direct deposit information to the IRS. This will ensure your stimulus payment is dropped to that account and will be available to cover your balance due (or to spend).

What happens if I don't file a 2018 or 2019 tax return, or made too much money on the latest filed tax return to qualify? The payment is truly based on your 2020 tax return, so if you qualify for a payment but didn't get it (or qualify for a larger one) it will be provided on your 2020 tax return.

Is the payment taxable? Do I have to pay it back? What if I make more money in 2020 such that I shouldn't have qualified? The payment IS an advance on your 2020 tax return but the amount is from a brand NEW credit that increases your 2020 tax return. It is not taxable, it does not have to be paid back. I'm not 100% certain, but, every other time they did this, if you qualify for a bigger payment on your 2020 tax return, you get the extra. If you deserve less, they let it go.

The IRS will send you a letter detailing the amount you should have received and how it was calculated.

Weird tricks:
A child over 17 on your tax return gets you $500. Filing independently they could get $1200.
Filing separately if one person has a big income and the other doesn't could get you a stimulus check when otherwise not entitled due to income, but will probably f**k up your tax return.
If your 2018 tax return met the above requirements and your 2019 doesn't, and you haven't filed 2019 yet, you should wait to file until after you get your stimulus payment.

Scams: No one is going to call or email you requesting you provide direct deposit information, personal information or have you pay money upfront to get the payment. The scams haven't started...but they will.

Coronavirus Tax Post - Stimulus Checks and MORE

I'm going to try to consolidate all the Coronavirus stuff that I think is important into one tax post...
A lot of this is very early interpretations of the laws and guidance, and is subject to changing at any time.

First: The IRS is currently not manning their live phone lines. So don't try to call.

Second: You don't have to take your 2020 Required Minimum Distribution from your Retirement Account. This applies to people over the age of 70 and a half who have to take annual withdrawals from their tax advantaged accounts and pay taxes on them. This is an under-reported and under-appreciated big deal. I highly recommend taking advantage of this if you don't need the money from your account. Pulling money out during a dramatic stock market downturn is painful.

Third: You don't have to pay your balance due for 2019 until 7/15/2020. Most states are following suit. You also don't have to make your first Estimated tax payment for 2020 until 7/15/2020, though, ironically, the 6/15/2020 payment is still due on time. If you scheduled a direct debit for 4/15/2020, you can cancel the payment by calling the IRS. Here is what they say about it: "Call IRS e-file Payment Services 24/7 at 1-888-353-4537 to inquire about or cancel your payment, but please wait 7 to 10 days after your return was accepted before calling. Cancellation requests must be received no later than 11:59 p.m. ET two business days prior to the scheduled payment date."

Fourth: If you suffered economic impact from the Coronavirus, specifically, you or a family member you care for contracted the disease, or you lost your job or lost business or were laid off, or lost business income due to the virus, you can withdraw up to $100,000 from your retirement accounts without penalty and with the ability to pay the taxes due over three years, or put the money back and pay no taxes. The connection and calculations between the economic impact and the withdrawal amounts are not clearly defined. There are also changes to loan requirements and costs associated with making a hardship withdrawal. I DO NOT recommend doing this unless ABSOLUTELY necessary and only withdraw the minimum amount possible to keep your family alive. In fact, there are so many programs available to defer rent, mortgages and student loan payments that this should not be necessary.

Fifth: Things I don't know jack about: There is greatly expanded ability to get unemployment benefits if you have reduced income vice full job loss, and for self-employed people. There are amazing small business loan opportunities, some of which don't require paying back (go to sba.gov). There are programs that limit the ability to evict people based on non-payment of rent, guaranteed deferment of mortgage payments for government backed loans, and deferment of student loan payments.

Sixth: There are a bunch of useful resources out there. I will have another post with these linked. See the Master Index Coronavirus section to find it.

Seventh: You might have heard that stimulus checks are coming. I'm writing a BIG post on that. See the Master Index Coronavirus section to find it.

Eighth: The IRS has suspended pulling back taxes, delinquent student loans and other debts from tax refunds and stimulus payments. Delinquent Child Support withdrawals are still happening on a state by state basis.