By now, many of my clients have received their stimulus checks or direct deposits, but I wanted to clear up a few common questions about these payments:
What should I do if I have not yet received a payment?
You can
visit this IRS page to get information on the status of your payment, although this website has been glitchy for many people. If it does not provide you with an answer, try the solutions
in this article or try again later.
Why am I receiving a paper check rather than direct deposit?
Despite initial suggestions that anyone who had provided the IRS banking information in the past would receive direct deposit, it appears that for the most part, this is only occurring for taxpayers who have already had their 2019 federal refund direct-deposited. If this does not include you, you can provide the IRS your bank info
via the same status page.
The deadline to do this is Wednesday; after that, you will likely receive a paper check to the address on your most recent returns.
Why am I receiving a different amount than $1,200?
If you have more than $75,000 in income as a single filer, or $150,000 for married couples filing jointly, you will not receive the full $1,200 but it will begin to be phased out. If income is more than $99,000 single/$198,000 married, you are above the maximum limit to receive a stimulus check.
You will receive an extra $500 for each dependent child under 17 years old.
What if I receive a check for a deceased person?
IRS mailed many checks to deceased people accidentally--these should not be cashed, but should be mailed back to IRS (if you have already cashed the check or it was direct deposited, IRS is directing you to write a new check back to US Treasury). Mailing addresses for these checks are listed under the final question on
this IRS page.
How will this impact my 2020 tax returns?
The stimulus will not be counted as 2020 income and is not being deducted from 2020 refunds. Rather, it is a credit on the 2020 return that we are being paid early. Federal 2020 returns will likely include lines that indicate the amount you were entitled to, minus the amount you actually received, and only if there is a difference will this be adjusted on 2020 returns.
