Where’s my payment?

After the federal government sent out a reported 80 million stimulus checks via direct deposit to eligible recipients April 13, some individuals took to social media and contacted the Creston News Advertiser inquiring as to why they weren’t included in this first wave of payments or were surprised to have received less than $1,200.

Here’s a rundown of how much to expect, why and when you it should arrive.

Paper checks

The first round of stimulus payments were issued to some eligible individuals who not only filed their 2018 and 2019 tax returns, but also had accurate direct deposit information on file. According to a memo released by the House Ways and Means Committee, the IRS began issuing paper checks this week, and will continue to do so weekly for individuals who have not provided direct deposit information but for whom IRS has a mailing address.

According to the IRS, checks will be issued at a rate of about 5 million per week, which could take until September. The checks will be issued in reverse “adjusted gross income” order — starting with individuals with the lowest incomes first:

• Less than $10,000: April 24

• $10,001 - $20,000: May 1

• $20,001 - $30,000: May 8

• $30,001 - $40,000: May 15

• $40,001 - $50,000: May 22

• $50,001 - $60,000: May 29

• $60,001 - $70,000: June 5

• $70,001 - $80,000: June 12

• $80,001 - $90,000: June 19

• $90,001 - $100,000: June 26

• $100,001 - $110,000: July 3

• $110,001 - $120,000: July 10

• $120,001 - $130,000: July 17

• $130,001- $140,000: July 24

• $140,001 - $150,000: July 31

• $150,001 - $160,000: August 7

• $160,001 - $170,000: August 14

• $170,001 - $180,000: August 21

• $180,001 - $190,000: August 28

• $190,001 - $198,000: September 4

• Remaining checks: September 11

If you would like to update your direct deposit information, individuals can do so online at https://www.irs.gov/coronavirus/get-my-payment. Address updates can be made online at https://www.irs.gov/taxtopics/tc157.

Why you received less

Some Crestonians were surprised to receive less than the anticipated $1,200 stimulus payment. This is based on an individual or couple’s adjusted gross income and filing status as single, married or head of household.

According to a representative from the IRS, single filers are eligible for the full $1,200 stimulus payment if their adjusted gross income does not exceed $75,000. The payment shrinks by 5% for every additional $100 of income. For example, someone making $75,100 can expect a payment of $1,195 and a person making $85,000 will take home $700. The payments for a single filer phase out at $99,000.

Couples filing a joint return are eligible for a full $2,400 stimulus payment should their adjusted gross income not exceed $150,000. Payments for married couples filing jointly shrink by $5 for every additional $100 beyond the $150,000 income threshold before expiring at $198,000.

Individuals who file as head of household and whose adjusted gross income does not exceed $112,500 are eligible for a full $1,200 stimulus payment. This filer’s stimulus payment shrinks by 5%, or $5, for every additional $100 of income, which phases out at $136,500.

Dependents

Parents with children ages 16 or younger will receive an additional $500 per child so long as that child is claimed as a dependent on your tax returns. If custody is split, whichever parent has claimed the child on their tax returns will get the $500 benefit.

College students

Concern has been raised by college students who work and file taxes and are wondering why they do not qualify for a stimulus payment.

According to a representative from the IRS, a child is not eligible if a parent has claimed them on their 2019 tax return. Additionally, the adult child will not receive a $1,200 credit in 2021 if they are claimed on a parent’s tax return in 2020. However, if you can not be claimed as a dependent by anyone else, you may be eligible to claim a $1,200 credit on the 2020 tax return filed next year.

Eligibility

To be eligible for a stimulus payment, recipients must be a U.S. citizen or U.S. resident alien, cannot be claimed as a dependent on someone else’s return, and must have a valid Social Security number.

An exception to the eligibility requirements above is made if either spouse is a member of the U.S. Armed Forces at any time during the taxable year, which means only one spouse needs to have a valid SSN.

Additionally, to be eligible, recipients must have an adjusted gross income below an amount based on their filing status and number of qualifying dependents, and must have filed their 2018 and 2019 tax returns.

Scams

On April 2, the IRS issued a press release warning of coronavirus-related scams and schemes tied to economic impact payments.

The IRS reminds taxpayers that scammers may emphasize the words “stimulus check” or “stimulus payment.” The official term is “economic impact payment.”

Scammers may also ask taxpayers to sign over their economic impact payment check to them; contact taxpayers by phone, email, text, social media and request verification of personal and/or banking information by saying the information is needed to receive or speed up their payment. Scammers may appear to be working on the taxpayer’s behalf. Taxpayers should also be alert to receiving bogus checks, perhaps for odd amounts, after which a scammer asks the taxpayer to call a number or verify information online in order to cash it.

To report suspected economic impact scams, contact the IRS at phishing@irs.gov.