© 2020 Arizent. All rights reserved.

Treasury begins sending $1,200 rescue payments this week

Register now

Americans will start to receive stimulus payments this week, a centerpiece of the $2.2 trillion rescue package meant to provide a buffer against the coronavirus pandemic that’s shuttered much of the U.S. economy.

The Internal Revenue Service has begun sending $1,200 payments to middle and lower income adults, plus $500 for their minor children, though it could take until September for every eligible person to get the money.

The first payments “should be deposited directly into individual’s bank accounts; the precise date you will see payments in your account depends on how long individual banks typically take to process direct deposits,” according to a press release from the House Ways and Means Committee Republicans.

The IRS will first send the money to individuals for whom the agency has direct deposit information, about 60 million people. The remainder will be mailed as checks. That process is expected to begin April 20 but could take until the fall to complete.

Payments will be made first to those earning the least.

The IRS has launched a tool for non-tax filers, such as those who had income under $12,200 last year and weren’t required to file a federal return, to enter direct deposit information to get their payments.

The agency plans to have a second website up by April 17 that will show people the status of their payments, including the date the money is scheduled to be deposited or mailed. That tool will also let people who’ve typically gotten their tax refund in the mail to provide their bank account details to get their stimulus payment more quickly.

The IRS is using information from 2018 and 2019 tax returns to process the payments. It says taxpayers who’ve yet to file a return this year should do so as soon as possible, and elect to receive the refund via a direct deposit. The information can then be used to distribute the stimulus payments. Social Security and disability recipients will receive their payments automatically.

The tax deadline was extended to July 15 from April 15 to give people more time to file and pay during the pandemic.

Taxpayers that don’t need extra time and who expect to get a stimulus payment should file as soon as possible so that the agency has their most details on file, said Christina Taylor, head of operations for Credit Karma Tax.

“The quicker, the better,” she said.

Americans earning $75,000 or less, or $150,000 and below as a couple, are eligible for the full $1,200 payout per adult, plus $500 for each child under 17. Those amounts are reduced for people with higher incomes, and people who make $99,000 or more in earnings (or $198,000 for a couple) get nothing, even if they have children. Individuals must have a Social Security number to receive a payment.

Bloomberg News