Stimulus Checks Update

Who is eligible for the economic impact payments, and how much will they receive?
 
For purposes of the economic impact payments an ‘eligible individual’ means any individual other than:

  • Any nonresident alien individual;
  • Anyone who was claimed as a dependent on another person’s tax return; or
  • An estate or trust.
  • The rebates include:
  • $1,200 for an eligible individual ($2,400 in case of eligible individual filing a joint return; and
  • $500 per qualifying child.

Will the amount of the economic impact payments be adjusted based on someone’s income?
 
The amount of the rebate will start phasing out based on the taxpayer’s adjusted gross income. The phase out starts at $75,000 for individuals, $112,000 for head of household, or $150,000 for married filing jointly. The payment amount is reduced by $5 for every $100 of the taxpayer’s income that exceeds the phase-out threshold and is completely eliminated for single filers with incomes over $99,000, $146,500 for head of household filers with one child, or joint filers with incomes over $198,000 with no children. 

How will the economic impact payments be delivered?
 
The IRS will disburse the payments electronically to any account to which the taxpayer has authorized, on or after Jan. 1, 2018, to receive their tax refund from the IRS. If the IRS does not have an authorized account to send the rebate to electronically, a Treasury check will be mailed.

Will the IRS notify people after the payments have been sent?
 
Not later than 15 days after the IRS has distributed a payment to an eligible taxpayer, the IRS will send a notice by mail to the taxpayer’s last known address. This notice will indicate the method the payment was sent, the amount of the payment, and a phone number to contact the appropriate point of contact at the IRS to report any failure to receive such payment.

When will the economic impact payments be sent?
 
The CARES Act does not contain a specific date other than to say the rebates should be sent as rapidly as possible. Payments have begun issuing as of April 10.

In most cases the IRS will transfer the ACH payments over a three-week period starting April 10 for an estimated 60 million Americans who have direct deposit set up with the IRS.
 
For the remaining individuals, checks will likely begin to be cut by May 5th, at a rate of about five million checks a week. Some eligible consumers may not receive checks until August. The government is sending the checks based on income, with the lowest income individuals receiving checks first.
 
What will people need to do in order to receive the payment?
 
For the vast majority of individuals, no action will be needed on their part. The IRS will use the taxpayer’s 2019 tax return, or their 2018 tax return if they have not yet filed their 2019 tax return.
 
The CARES Act also instructs the Treasury, in coordination with the Commissioner of Social Security, to engage in a public campaign to alert all individuals of their eligibility for the recovery rebates and how to receive it if they have not filed either a 2019 or 2018 tax return.
 
Are economic impact payments taxable?
 
The economic impact payments would not be counted as taxable income for the recipients since the payment are a credit against tax liability and are refundable for taxpayers with no liability to offset.
 
What about seniors whose only income is from Social Security or a veteran whose only income is veterans’ disability?
 
Those whose income is only social security, veterans’ disability, or other federal benefit payment, are still eligible to receive the economic impact. This is contingent on them not being a dependent of another taxpayer.
 
Are the funds from the stimulus checks subject to set off, collections or garnishment?
 
The guidance from the law firm Farleigh Wada Witt, which is linked below, provided details on the topics of negative share accounts, statutory lien or offset rights, and third-party garnishments.
 
How do we verify stimulus funds that are in the form of a U.S. Treasury Check?

U.S. Treasury checks which can verified on the Treasury Check Information System (TCIS) Check Verification site.
 
Where can I view the CARES Act for myself?
 
You can view the CARES Act online here.
 
Are there other resources of information I can use?
 
Yes, there a several resources available to learn more about the recovery rebates:

PLEASE NOTE:  We are processing the Stimulus Checks as soon as the IRS is sending them out.   The best way to find out if your check has been deposited is through our Online Banking or Phone Banking.   If you are not signed up for Online Banking, you can do this through our website.  If you are not signed up for Phone Banking, please call us and we will help you.