The first round of COVID-19 recovery stimulus payments will arrive in the bank accounts of some Americans today. These stimulus payments will be paid via direct deposit.
Direct Deposit is the Way to Go
The first few waves of payments will prioritize low-income Americans and Social Security beneficiaries. That means some Americans will have to wait weeks or months to receive a stimulus payment.
IRS to Launch Direct Deposit Tool
For people who are not set up for direct deposit for tax refunds, the IRS will be launching a tool on April 17th to allow them to enter their direct deposit information online in order to expedite payments.
People who receive Social Security, disability or Railroad Retirement benefits will automatically receive coronavirus stimulus payments.
Online Tool for Non-Filers to Receive Stimulus Payment
Some individuals are not required to file a tax return but are eligible to receive a coronavirus economic recovery payment. The Treasury Department and the IRS have set up a tool online for non-filers to enter payment information.
Those people who earned gross income that did not exceed $12,200 ($24,400 for married couples) in 2019 are not required to file a federal tax return. These people may visit this page to provide the Treasury Department with direct deposit details.
It is required that you have a Social Security Number and not be claimed as a dependent by anyone on a 2019 tax return.
The wait for paper checks may be quite long.
The first round of paper checks will be mailed the week of April 20th (very likely April 24th), but the Treasury Department can only process a fraction of the checks needed each week, so those who are waiting for paper checks to arrive in the mail may have a significant wait time.
How Much Will My Stimulus Check Be?
Economic recovery rebate amounts will be calculated using 2019 tax returns if filed, or 2018 if not.
Those who have not filed 2019 tax returns yet and receive a smaller stimulus payment than expected due to their 2018 income being higher will receive the difference after filing a 2020 tax return.
For those who receive a higher stimulus check because it is based on their 2018 tax return, no worries. The IRS will not expect you to repay the overage.