Understanding Economic Impact Payments
The Internal Revenue Service (IRS) has been distributing economic impact payments as part of the government’s response to the COVID-19 pandemic. These payments are intended to provide financial assistance to eligible individuals and families who have been impacted by the economic downturn.
Eligibility for Economic Impact Payments
To be eligible for an economic impact payment, you must meet the following criteria:
- You must be a U.S. citizen or resident alien.
- You must have a valid Social Security number.
- Your adjusted gross income (AGI) must be below certain limits:
- $75,000 for single filers
- $150,000 for married couples filing jointly
- You cannot be claimed as a dependent on someone else’s tax return.
Amount of Economic Impact Payments
The amount of your economic impact payment is based on your AGI and filing status. The maximum payment amounts are:
- $1,200 for single filers
- $2,400 for married couples filing jointly
- $500 for each qualifying child
How to Receive Economic Impact Payments
Most eligible individuals will receive their economic impact payment automatically by direct deposit into the bank account they provided on their most recent tax return. If you have not yet received your payment, you can check the status of your payment on the IRS website or by calling the IRS at 1-800-919-9835.
Other Reasons for Receiving Payments from the IRS
In addition to economic impact payments, the IRS may send you money for other reasons, such as:
- A tax refund
- A stimulus payment
- A payment for a tax credit or deduction
- A payment for a previous overpayment of taxes
If you are unsure why you received a payment from the IRS, you can contact the IRS at 1-800-919-9835 or visit the IRS website.
Frequently Asked Questions
Q: Why did I receive a smaller economic impact payment than I expected?
A: Your economic impact payment may have been reduced if your AGI exceeded the income limits. The payment amount is reduced by $5 for every $100 of AGI above the $75,000/$150,000 thresholds.
Q: I am not required to file a tax return. Can I still receive an economic impact payment?
A: Yes, you can still receive an economic impact payment if you are not required to file a tax return. The IRS will use the information on your Social Security benefit statement or Railroad Retirement benefit statement to calculate and send your payment.
Q: I received an economic impact payment, but I am not eligible. What should I do?
A: If you received an economic impact payment but you are not eligible, you should return the payment to the IRS. You can do this by mailing a check or money order to the IRS at the address provided on the payment notice.
Q: I have not received my economic impact payment yet. What should I do?
A: If you have not yet received your economic impact payment, you can check the status of your payment on the IRS website or by calling the IRS at 1-800-919-9835.
IRS Tax Refund Update – Delays and Smaller Refunds
FAQ
Why did I get a random payment from IRS?
Why does the IRS keep sending me checks?
Why does the IRS keep sending me bills?
Is the IRS giving out money?
Why does the IRS send a letter to taxpayers?
The IRS mails letters or notices to taxpayers for a variety of reasons including if: They have a balance due. They are due a larger or smaller refund. The agency has a question about their tax return. They need to verify identity. The agency needs additional information. The agency changed their tax return. Don’t ignore it.
Why does the IRS send a notice?
The IRS sends out letters or notices for many reasons. Generally, it’s about a specific issue with a taxpayer’s federal tax return or tax account. A notice tells a taxpayer about changes to his/her account. Your notice or letter will explain the reason for the contact and give you instructions on how to handle the issue.
Why is the IRS holding my tax refund?
There are many reasons why the IRS may be holding your refund. You have unfiled or missing tax returns for prior tax years. The check was held or returned due to a problem with the name or address. You elected to apply the refund toward your estimated tax liability for next year. The IRS is reviewing your tax return.
Why do I need to contact the IRS?
It may be about a specific issue on your federal tax return or account, or may tell you about changes to your account, ask you for more information, or request a payment. You can handle most of this correspondence without calling or visiting an IRS office if you follow the instructions in the document. What do I need to know?