The IRS and U.S. Government recently announced an economic impact payment recovery program designed to provide financial relief to tax payers during the sudden economic impact of the Covid-19 pandemic. For most tax payers, the payment is automatic and you do not need to do anything special. The relief is available to tax payers who filed returns in 2019 and 2018, as well as seniors and retirees.
Who Can Get The Economic Impact Payment?
U.S. residents will receive a payment of $1,200 or $2,400 if they are married and filed their taxes jointly. The payment is based on current income levels. Eligible retirees, social security recipients and anyone who does not make enough money to normally file a tax return will also receive a payment.
Who Will Not Get The Disaster Relief Payment?
Individuals with high incomes will not qualify for an economic impact payment. Individuals who were claimed as a dependent on another’s return will also be ineligible for a payment.
Do I Need To Do Anything To Receive An Economic Impact Payment?
No. As was mentioned, there is nothing special you need to do. The disaster relief payment will arrive automatically for taxpayers who filed their 2019 and 2018 taxes.
Those that don’t need to file a return won’t have to do anything special either. They will receive their benefit payment automatically along with everyone else who is eligible.
Where Can I Find Out More Information?
More detailed information including eligibility restrictions and specifics on who is actually eligible for an economic impact payment is available on the IRS website by clicking here. You can also download this handy infographic provided by the IRS as well.
If you would like to speak to us about the disaster relief payment and how it affects your income or taxes, please call DAT CPA at (727) 742-0384 today or contact us on our website by clicking here.
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