Following is an update from U.S. Congressman Jim Himes:
Friends,
I wanted to update you about the status of CARES Act payments to help blunt the impact of the coronavirus pandemic.
The House Committee on Ways & Means expects that the IRS will issue 60 million payments to Americans through direct deposit in mid-April (likely, the week of April 13th). The IRS will make these initial payments to taxpayers whose direct deposit information is available from their 2018 or 2019 tax returns. Social Security beneficiaries who filed federal tax returns with their direct deposit information included will also receive economic payments during this first round.
Social Security beneficiaries who did not file tax returns in 2018 or 2019 but receive their benefits via direct deposit should get their rebate in the government’s second round of payments. The IRS hopes to distribute these payments within 10 days of the first round being issued. The Treasury Department and IRS announced that these beneficiaries will receive their rebate just as they would get their Social Security benefits, so they will not need to file a “simple tax return” to be eligible for a payment.
The IRS should begin sending out paper checks about 3 weeks after the first round of payments are made (ideally the week of May 4th) in reverse adjusted gross income order. This order will ensure that low-income taxpayers receive a stimulus payment first. Unfortunately, the IRS expects that this process could take weeks. Americans who file a tax return or share their direct deposit information with the IRS can largely avoid this painstaking process.
Filers will receive a paper check unless they update their direct deposit information in a forthcoming IRS portal, which will allow taxpayers to provide their banking information and check the status of their rebate payment. Nonfilers may need to file a “simple tax return” with their direct deposit information if they want to receive their rebates quickly. The simple tax return should ask nonfilers to answer a few basic questions about their name, social security number, dependents, and deposit information. The IRS will share more information about the simple tax return soon on IRS.gov/coronavirus. I will also update you as this becomes available.
While the IRS delayed the federal income tax filing due date to July 15, 2020, the agency is encouraging taxpayers to file their 2019 returns to the maximum extent possible to gather appropriate payment information. As taxpayers file their 2019 returns electronically, the IRS will post updated tax information weekly to its files and then send this information to another agency that will issue weekly payments.
Click here to review CARES Act resources from the Ways & Means Committee about rebates, unemployment benefits, and more. In the days ahead, I will continue to answer your frequently asked questions about these payments on Himes.House.Gov/CoronaFAQ.
Sincerely,
Jim Himes