COVID-19 Economic Stimulus Payments
by GSB Team
April 13, 2020
Your team at Grand Savings Bank is hearing many questions about the federal government’s announced COVID-19 Economic Stimulus Payments and the anticipated checks most American households will be receiving. To help our customers better understand what to expect in coming days and weeks, we have created a guide to help narrow the details into a few key topics most likely to affect you.
What You Need to Know about the COVID-19 Economic Stimulus Payments
1. Who is eligible to receive economic impact payments?
U.S. residents with a work eligible Social Security number who are not a dependent of another taxpayer will receive payments based upon their adjusted gross income. Payments are up to $1,200 for individuals or head of household filers, and $2,400 for married couples filing jointly.
2. How does my income affect the amount I will receive?
Those who earn up to the following gross adjusted income will receive the full amount:
- $75,000 for individual filers
- $112,500 for head of household filers
- $150,000 for married couples who file jointly
- Individuals with gross adjusted income at these levels are also eligible to receive an additional $500 per qualifying child.
Taxpayers will receive a reduced payment if their adjusted gross income is between these amounts:
- $75,000 and $99,000 for individual filers or married persons filing separately
- $112,500 and $136,500 for head of household filers
- $150,000 and $198,000 for married couples who file jointly
- The amount of the reduction in payment is based upon the actual adjusted gross income reported on the tax payer’s return. Payments drop by $5 for each $100 earned above the $75,000/$112,500/$150,000 thresholds.
Payments will not be made to these individuals based upon their adjusted gross income:
- Single filers who earn more than $99,000
- Head of household filers who earn more than $136,500
- Joint filers with no children who earn more than $198,000
3. I don’t make enough income to file a tax return or my income comes solely from a government benefit program. Will I receive a payment?
The following individuals will automatically receive payments:
- Eligible retirees and recipients of Social Security
- Railroad Retirement beneficiaries
- Disability benefits recipients
- Veteran’s benefits recipients
- Those with no income or income below the level to require filing a tax return
- Those whose income comes entirely from certain benefit programs, such as Supplemental Security Income
4. How will I receive my payment?
Most people will not need to do anything to receive payment. The IRS will use 2019 tax returns to determine how much you should receive. If you have not completed your 2019 tax return yet, the IRS will use your 2018 tax filing to calculate your payment. If you provided a bank account to the IRS for your last tax return, they will use this same information for direct deposit of your Economic Stimulus Payment.
If you have never provided direct deposit information to the IRS, the U.S. Treasury plans to develop a web-based site for you to submit your banking information so you can receive direct deposit payment rather than a check in the mail. The site is expected to be available in late April/early May.
For those who do not opt to provide direct deposit information, the IRS plans to start mailing checks in May. Rounds of check payments may last into September, with lowest income Americans receiving payments first.
5. I’m worried about con artists who are trying to scam people out of their payments or get access to personal banking information. How do I keep my money safe?
Please remember the following very important points:
- Your bank or the IRS will never contact you by phone, text, email or social media to ask for personal information
- Watch out for emails with attachments or links claiming to have special information about economic impact payments or refunds; you will never have to click through links to get your money
- If you don’t have direct deposit, you will never need someone to set up your account
- You will never need to verify your check amount to anyone
- You will never be threatened
The IRS plans to mail a letter about payment to each taxpayer’s last known address within 15 days after the funds are paid to them, with information on how the payment was made and how to report if the payment is not received.
6. How will I know my Economic Stimulus Payment has been direct deposited to my Grand Savings Bank account?
A great feature of Online Banking is the ability to set up automatic alerts to tell you when a credit over a certain amount has been made to your Grand Savings Bank account. When deposits at or above the amount you set are received in your account, we will notify you through your Online Banking app and by text message.
If you are not already enrolled in Online Banking and want to be able to keep track of your transactions from anywhere 24/7, click here or give us a call at 1-800-460-2070 for assistance.
We are here for you
We know this is such an anxious time for so many of our customers, and we want to be there to support you any way we can. If you have any questions or concerns about any of this information or need banking assistance from our team, please don’t hesitate to reach out by phone or at email@example.com. Our drive-thrus remain open during this time of physical distancing, as well.