The Internal Revenue Service announced on Twitter today, April 11, that the first Economic Impact Payments (EIP), commonly known as COVID-19 stimulus checks, have been direct deposited into bank accounts.
The official IRS Twitter account posted
#IRS deposited the first Economic Impact Payments into taxpayers’ bank accounts today. We know many people are anxious to get their payments; we’ll continue issuing them as fast as we can. For #COVIDreliefIRS updates see: http://www.irs.gov/coronavirus
The EIP is part of the CARES Act passed by Congress earlier this year that aims to bolster the U.S. Economy in the midst of the COVID-19 pandemic. Americans will receive a stimulus check based on income with the maximum payment being $1,200 per qualified person. Anyone making less than $75,000 in 2019 will receive the full payment of $1,200. Couples who filed jointly and made less than $150,000 will get $2,400. An individual who filed as “head of household” and earned $112,500 or less will also receive $1,200. Persons will also receive $500 per dependent child and/dependent in the household.
The coronavirus payment is based on federal tax returns for 2019 or 2018. Persons who do not normally file taxes to an online tool to make sure they are included. The IRS reported that persons who receive Social Security payments and railroad retirees are excluded from using the online tool.
Persons receiving more than $75,000, will have their payments reduced by $5 for every $100 of income that exceeds the limits. The payment decreases to zero for an individual making $99,000 or more or a couple making $198,000 or more.
Persons owing back taxes or other debt to the government are not disqualified from being eligible for the payments. However, Americans who are overdue on child support could see their cash payments reduced or eliminated.
The IRS has announced that they are launching an online tool to help persons keep track of the status of their payment. The online tool will also include information as to when a specific stimulus payment will be deposited or mailed. The online tool is expected to launch sometime in the middle of April.
For more information regarding EIP please visit www.irs.gov/eip