What is “Savoring” and How Can it Help You Build Wealth?
This week, the first round of stimulus payments, officially called “Economic impact payments”, started making their way onto people’s bank accounts. Treasury Secretary Steven Mnuchin estimates by Wednesday 15, 80 million people are expected to receive a direct deposit in their bank account.
The first round of recipients includes mainly people whose direct deposit information is on file with the IRS from a 2018 or 2019 tax return. A second round will send payments to Social Security beneficiaries who did not file tax returns but have provided direct deposit information in their other benefits forms. The third round of payments will be sent the first week of May in the form of checks to those who did not file tax returns but provided direct deposit information in their other benefits forms.
About 125 million Americans are expected to receive the economic impact payment.
If you have filed federal tax returns for 2019 or 2018, you do not need to take any further action. The IRS will use their information on the latest tax filings to calculate the payment amount. You can learn more on the IRS portal here.
If you were not required to file taxes during 2018 and 2019, head over to the IRS Non-filers section to submit your bank account information so you can receive the stimulus payment - granted you qualify.
Most social security beneficiaries and railroad retirees will not be required to do anything to receive the stimulus payments. They will receive the stimulus in the same way they receive their social security benefits. However, there is a small group of social security beneficiaries that should register their information on the IRS Economic Impact Payments page to make sure they receive the full payment. The groups that should register are:
The IRS launched the “Get my payment” tool this week. The application will help you check the status of your payment if you haven’t received it yet and will let you know when it will reach your bank account.
If you have previously collected your refund via check and have not received your payment yet, you can opt in to receive the payment via direct deposit and will be prompted to enter your direct deposit information.
Under the relief bill, taxpayers making less than $75,000 qualify for a one-time payment of $1,200 and it starts to gradually decrease for those earning between $75,000 and $99,000. Taxpayers who make more than $99,000 a year do not qualify for the Economic Impact Payment.
The Tax Foundation created the following graphic to explain how much taxpayers will receive from the stimulus package based on filing status and income.