Some May Not Receive Their Stimulus Check Until August
The federal government expects to make payments to millions of Americans in mid-April as part of the new stimulus law. However, some people without direct deposit information may not get their checks until mid-August or later.
The IRS will make about 60 million payments to Americans through direct deposit in mid-April, likely the week of April 13. The IRS has direct deposit information for these individuals from their 2018 or 2019 tax returns.
Starting the week of May 4, the IRS will begin issuing paper checks to individuals. The paper checks will be issued at a rate of about five million per week, which means it could take up to 20 weeks to get all the checks out. Going by that timeline, the last of the checks wouldn't be received until the week of August 17.
There have been extensive discussions between the IRS and Department of Treasury with regards to speeding up the process.
"The Committee remains focused on ensuring all eligible Americans receive their payment as quickly as possible," a House Ways and Means Committee memo stated.
These payments are all part of the $2.2 trillion rescue package signed into law last week by President Donald Trump aimed at combating the economic downturn as a result of the coronavirus outbreak.
As a reminder, most people don't need to do anything to get the money.
Earlier this week, the government reversed an earlier position and said that Social Security recipients who are not required to file a tax return will not need to file a simplified tax return to receive their stimulus check. The IRS will use the information on the Form SSA-1099 and Form RRB-1099 to generate the $1,200 checks to Social Security recipients who did not file a tax return in 2018 or 2019.
There are an estimated 150 million to 170 million U.S. taxpayers, which leaves about 90 to 110 million taxpayers who are either filers or nonfilers but about whom the IRS wants information.
The filers will receive a paper check unless their direct deposit information can be updated in the IRS portal. Nonfilers may need to file the simple tax return and likely include direct deposit information if they want their rebate checks quickly.
The IRS is also encouraging taxpayers to file their 2019 returns as soon as possible.
The IRS will have a portal up and running in late April or early May that will allow taxpayers to find out the status of their rebate payment and update direct deposit information.
As a reminder, anyone earning up to $75,000 in adjusted gross income and who has a Social Security number will receive a $1,200 payment. Married couples filing joint returns will receive the full payment — $2,400 — if their adjusted gross income, which is what they report on their taxes, is under $150,000.
The payment steadily declines for those who make more. Those earning more than $99,000, or $198,000 for joint filers, are not eligible. The thresholds are slightly different for those who file as a head of household.
Parents will also receive $500 for each qualifying child under the age of 17.