Americans will start receiving stimulus payments as early as April 9, according to an internal IRS memo reviewed by The Washington Post. Most people should receive their money by mid-April via direct deposit, the Treasury said. If the IRS doesn't have your bank information, it will send a paper check to your last known address. The checks will be sent out starting at the end of April up until early September. Note that this schedule is subject to change. This post will be updated to reflect the latest information. Read more personal finance coverage.
Most Americans receiving a stimulus check should expect to see the payment in their bank account by April 15 (that also happens to be the former tax deadline, for those keeping score at home). While the IRS is attempting to get payments to people as soon as possible via direct deposit, it's still going to have to issue paper checks to millions of people who haven't provided bank details. "If we if have your information, you'll get it within two weeks. Social Security, you'll get it very quickly after that. If we don't have your information, you'll have a simple web portal. We'll upload it. If we don't have that, we'll send you checks in the mail," Treasury Secretary Steven Mnuchin said in a White House press briefing on April 2. You don't have to sign up or apply for anything to get your payment. In fact, if you receive a call, email, Facebook message, or other communication about your stimulus check, it's probably a scam. The government will never ask you to verify personal information over the phone and certainly will not ask for money. Here's when you can expect your stimulus payment to arrive, based on all the information we have so far. Note that this schedule is subject to change. This post will be updated to reflect the latest information. The IRS will begin electronic payments April 9 According to an internal document reviewed by The Washington Post, the IRS plans to begin generating electronic payments on April 9 for taxpayers who have filed a 2018 or 2019 tax return and qualify for a stimulus check. Dependents older than 16, people without a Social Security number, and those with incomes above $99,000 (or $136,500 if you file as a head of household) won't get a stimulus check. Up to 70 million people will be paid by April 15 Patricia McLaughlin, a spokeswoman for the Treasury Department, told The Post that 50 million to 70 million people would have their payments deposited by April 15. The Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, stipulates that stimulus payments will also go to Americans on Social Security retirement and disability benefits, even if they haven't filed a recent tax return. "Social Security recipients who are not typically required to file a tax return do not need to take an action and will receive their payment directly to their bank account," Mnuchin said in a Treasury release. The payments will be for the maximum amount, $1,200, and paid via the deposit or mailing information reported on tax forms SSA-1099 for Social Security recipients and RRB-1099 for people who retired from railroad service. Paper checks will start going out April 24 For those who have not filed a tax return in the past two years or do not have direct-deposit information on file with the IRS, the agency said it would give taxpayers the opportunity to submit this information online before sending out paper checks. "In the coming weeks, Treasury plans to develop a web-based portal for individuals to provide their banking information to the IRS online, so that individuals can receive payments immediately as opposed to checks in the mail," the IRS wrote on its website. If you don't submit your direct-deposit details, the payment will be sent as a paper check to your last known address. The IRS will begin issuing these checks on April 24, according to The Post's report, and prioritize low-income Americans. Checks for people with an adjusted gross income (AGI) of $10,000 or less will be sent out around April 24. The last group of people to get paid should be issued paper checks by September 11 From there, the IRS will send out 5 million paper checks per week, moving up the income thresholds in $10,000 increments, according to the report. For instance, people with incomes above $20,000 and less than $30,000 will be sent checks on May 1. On May 8, people with incomes between $30,000 and $40,000 will be sent checks, and so on. The process of mailing checks is expected to continue until September 4, when joint filers with an AGI of $198,000 — the cutoff for the minimum stimulus payment — will receive theirs. According to The Post, remaining payments for those who the IRS had no prior tax information will be sent on September 11.
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Still waiting for your coronavirus relief check? You may be able to speed up the process—but...Still waiting for your coronavirus relief check? You may be able to speed up the process—but you have to act fast: If you want to receive your payment by direct deposit you only have until Wednesday, May 13 at noon (local time) to submit your information. You can submit your banking information on the Get My Payment…Read more...
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The US government is adding $600 a week to unemployment pay during the pandemic, but it's not tax free
Unemployment benefits are considered compensation, just like income from a job. Under the CARES Act, the...Unemployment benefits are considered compensation, just like income from a job. Under the CARES Act, the federal government is paying eligible unemployed people an extra $600 a week until July 31. The additional payment is added on to your regular benefits and will be taxed as income. Read more personal finance coverage. Millions of Americans seeking unemployment benefits due to the coronavirus pandemic are getting a boosted payout. Under the CARES Act, any eligible unemployed person will receive both regular unemployment benefits from their state and an additional $600 per week from the federal government from April 5, 2020 until July 31, 2020. As long as you qualify for state benefits, you'll get the extra $600 added to your weekly pay. Is the $600 unemployment tax free? Unemployment benefits are generally not tax free (unlike the stimulus checks also approved under the CARES Act). Any money you receive from the federal or state government unemployment fund is included in your gross income and taxed at your ordinary income rate. If you qualify for unemployment benefits through your state, the extra money will be automatically added to your state benefits check or deposit and appear as one total amount. Early next year you'll receive Form 1099-G (Certain Government Payments) listing the sum total of unemployment payments you received in 2020. You use this form to fill out your tax return and make sure you paid the right amount of taxes. There are two ways to pay taxes on your unemployment income: through withholding or estimated quarterly payments. If you want your taxes automatically taken from your benefit check or direct deposit before you get paid, like they would be from a traditional paycheck, then you need to file Form W-4V (Voluntary Withholding Request). This will instruct the payor — most likely your state government — to withhold 10% of each payment for federal income taxes. It will also take a portion of the money for state taxes, if applicable. The other option is to make quarterly payments directly to the IRS for the amount you estimate you'll owe. Keep in mind that this method requires doing some calculations, meeting payment deadlines every three months, and may result in a penalty charge if you underpay. More tax day coverage: When are taxes due? How to file taxes for 2019 Should I do my own taxes? Credit Karma vs. TurboTax Where is my tax refund? Join the conversation about this story » NOW WATCH: Here's what it's like to travel during the coronavirus outbreak