Additional details regarding the stimulus checks have become available, so I have summarized them below for your convenience and to answer some common questions I have been hearing.

WHEN WILL I RECEIVE MY MONEY?

The IRS’s goal is to distribute funds beginning April 6 – however, I urge you to plan for mid-end of April.  You may recall that in 2008, at the height of the banking crisis, the government distributed funds directly to people, and it took about 8 weeks to distribute the funds.

HOW WILL THE IRS KNOW WHERE TO SEND THE MONEY?

If you already filed a 2019 tax return then the IRS will use the direct deposit information on your 2019 return to send your payment to your bank account. If you didn’t provide the IRS with your direct deposit details or you closed that account, then the IRS will mail you a check.

If you haven’t filed your 2019 tax return, then the IRS will check your 2018 tax return and use that information to determine whether you meet the qualifications for a check and to find your bank details or mailing address.

I AM ON SOCIAL SECURITY - WILL I RECEIVE A CHECK?

Yes!  As long as your total income does not exceed the limit mentioned in my first article.  Low-income Americans on Social Security do not need to file a tax return. As long as they received an SSA-1099 form (the Social Security benefits statement), the IRS will be able to send your payment via the usual way you get their Social Security payment.

***Retirees and people on disability are both eligible for the special payment***

WILL THERE BE ANOTHER PAYMENT IN THE SUMMER?

Maybe. President Trump has said he is open to another round of the checks, but only if the economy remains anemic through the spring and an additional boost is warranted.

ARE THE CHECKS TAXABLE?

No, they are not taxable.

IS THERE A SCENARIO WHERE I WOULD HAVE TO REPAY THE FUNDS?

Yes.  The checks are technically based on your 2020 income, but since no one knows their total 2020 income yet, the government is using tax returns from 2019 and 2018 to figure out who qualifies for a check.

*** It is possible that you may have to pay back some of the money if your income this year turns out to be significantly more than it was in 2019 or 2018. That’s expected to be a relatively small share of people, and the money would not have to be paid back until April 15, 2021***

I welcome your comments and questions, and I encourage you to share this information to those whom you believe will help.

Stay safe and healthy,

Gary