ST. LOUIS — Stimulus checks are on the way.
Some Americans saw the money automatically go into their bank accounts on Monday. By Wednesday, the treasury department said 80 million people would have the money directly deposited.
The average person is getting $1,200, but payments can go up to $2,400.
5 On Your Side already has received a lot of questions about who qualifies for the coronavirus stimulus checks, how much people can expect and what to do to make sure you get a check. That’s why we’ve teamed up with the experts at St. Louis accounting firm Anders CPAs and Advisors.
If you have a question about stimulus checks, text 5 On Your Side at 314-444-5125. This is a text-only line. We’ll work to pass along your questions to the experts at Anders. We’ll share your questions and their answers during newscasts throughout the week.
Stimulus check resources:
- Timeline: When you'll get your paper stimulus check
- Here's why IRS' 'Get My Payment' may not work for you
- When will stimulus checks be mailed? What to know if you're still waiting
- Find out when you'll get your stimulus check, or how to report if you don't get it
- ‘Not an insured worker’ but need to file for unemployment? Missouri has a new workaround
- If you didn't file your taxes in 2018 or 2019, here's what you need to do to get a stimulus check
- How you'll be able to find out when your stimulus check is coming
- Millions of Americans will get stimulus checks, but here's who won't
Does someone who has died qualify for the payment?
No. A payment made to someone who died before receipt of the payment should be returned to the IRS by following the instructions about repayments. Return the entire Payment unless the Payment was made to joint filers and one spouse had not died before receipt of the Payment, in which case, you only need to return the portion of the Payment made on account of the decedent. This amount will be $1,200 unless adjusted gross income exceeded $150,000.
What if my mom claimed me as a dependent in 2018 but not in 2019 and I had my federal tax refund with direct deposit? Will I qualify for the stimulus money?
Yes. The real question is how long it will take the IRS to process your 2019 return and your mom’s 2019 return. In your situation, processing those returns is necessary to determine your eligibility for the stimulus money.
Last year my husband and I filed a joint income tax return. The refund check that we received from the IRS was deposited into his checking account. Since that time, he has passed away, and that account has been closed. In addition, I now reside at a different address. My question is this: who do I contact with my new information?
If you want the IRS to send your check to a different bank account or address, the best option is to submit a 2019 tax return (if you haven't yet) with your current details. And this will work only if the IRS hasn't already processed your payment or sent it out. Also make sure the USPS has forwarding information for you. We expect the IRS should address and correct any delayed/missing payments by 12/31/2020. If the check is not received by then, the discrepancy can be addressed on the 2020 return.
My 41-year-old son had been in prison for DWI for five years and just got off probation of three years but cannot hold a job because of PTSD and medical problems. Is he entitled to stimulus payment?
If, we are reading this question correctly, your son has been on probation for the past three years. Under that scenario, if he filed any returns in 2018 or 2019, he is eligible for the stimulus payment. If he did not make enough money to file, he will need to go online to the IRS' non-filers payment site.
However, if he is incarcerated, he does not qualify for a stimulus check. In fact, if a person in jail or prison gets a payment, they're supposed to return it to the IRS immediately. The entire payment should be returned, unless it was made payable to joint filers and only one spouse is incarcerated. In that case, only the portion of the payment for the prisoner needs to be returned.
My stimulus payment got sent to the wrong address due to my tax lady putting the wrong house number on my tax return and the lady sent it back to the post office. Three times they sent it to her. For the fourth time, she shredded my check. How can I get a check reissued to my new address?
The IRS has indicated it will be sending out follow-up letters within 15 days of distributing stimulus payments. These will provide instructions on what to do if there is a problem. If this letter is successfully delivered to you but your payment wasn't, follow the instructions on it to let the IRS know, so they can get you the money you're entitled to receive. Again, we expect the IRS should address and correct any delayed/missing payments by 12/31/2020, and if the check is not received by then, the discrepancy can be addressed on the 2020 return.
I haven't received my stimulus check and don't have a date to when it'll be issued what should I do?
Keep checking the Get My Payment tool. The IRS says it’s updating its website daily. The IRS also began sending paper stimulus checks according to a schedule. They are mailing approximately 5 million paper checks per week, starting with the lowest adjusted gross income first.
If an employee voluntarily left your employment mid-March for another job with better benefits, do you need to replace that employee to qualify for forgiveness of your PPP loan?
If that employee was counted in the period that you used to set your baseline, you would need to replace that FTE (Full Time Equivalent) position. If you fail to replace that position, your forgiveness may be reduced.
I currently receive survivor benefits, Social Security and Veterans Affairs money. I filed under the non-filers tool on the IRS website. Before the first deadline, I added my daughter who is a minor as a dependent. Shortly after, I checked my stimulus check status and it was pending. I received it but it was only for $1,200. The extra $500 for each dependent was not included. Will I receive the second payment separately and additionally?
The most recent guidance from the IRS issued on May 1, states that those who miss dependent payments now will have to wait until they file a 2020 tax return to receive that money. Those who have not registered under the non-filers tool on the IRS website have until today (May 5th) to register and enter their dependents information to receive the full amount. There is a chance that a check could come separately, but not guaranteed. Once the stimulus checks are distributed, we are hearing that the IRS will begin addressing these types of situations.
If my mom filed taxes and claims me, and I also get a direct deposit refund, am I eligible for a stimulus check if she didn't receive $500 for me?
In short, the answer is no. However, whether parents get an additional $500 depends on your age. Anyone over the age of 16 years old and claimed by someone else as a dependent will not receive a stimulus payment. The person claiming that individual will also not get the extra $500 because those extra payments are only for dependents under 17 years old. Children who are (or can be) claimed as dependents by their parents are not eligible individuals, even if they have enough income to have to file a return.
I have tried several times on the IRS website to find out about my stimulus check for me and my wife. It keeps telling me the information is incorrect. All information is correct. What can be done or what steps should I take? I still have not received a stimulus check.
Unfortunately, the IRS is not accepting phone calls right now. As many taxpayers report difficulty accessing the site, the last statement the IRS issued stated that the Get My Payment site "is operating smoothly and effectively." However, from what we are reading, taxpayers are experiencing issues because so many people are trying to use the system at one time and the website is getting overwhelmed. We would recommend to keep checking the status on the IRS website regarding your stimulus payment. Payments for those receiving a check instead of direct deposit are being sent to taxpayers with the lowest adjusted gross income first, so it could take some time until all checks are mailed. The last date for the government to issue stimulus checks is 12/31/2020. We would expect this to be resolved well in advance of this date, but there can always be discrepancies that will be addressed on their 2020 return.
Is the extra $600/week on unemployment taxable income?
Yes it is. You will receive a 1099-G next January showing the amount to be reported as income on your 2020 tax return.
I am a small business owner and have already laid off my employees, can I qualify for the Paycheck Protection Loan if I bring my employees back?
Absolutely. You can actually qualify for the loan even if you are not able to bring all of your employees back; although, your loan forgiveness might be decreased. The more employees you bring back, then your potential for maximum loan forgiveness is greater.
Can my stimulus payment be intercepted if I owe child support?
Yes, the CARES Act allows the Treasury Offset Program (TOP) to collect delinquent child support obligations. The TOP can take your entire stimulus check, up to the amount you owe.
My stimulus check was deposited to an old bank account, deposited in an incorrect bank account or mailed to my old address. What do I do?
If the account is no longer active, the bank will reject the deposit and the IRS will issue a check. You can visit irs.gov to find the status of your stimulus check and/or update your address. If your check has not yet been issued, you can file a change of address (Form 8822) with the IRS. In any scenario, if you do not receive your money now, it will be reconciled when you file your 2020 tax return.
My wife and I have separate checking accounts. How do we get the check?
If you had a refund directly deposited for tax year 2018 or 2019, the IRS will deposit the payment into the bank account used on the tax return. If you elected to split your refund between several accounts, you cannot use the Get My Payment tool on the IRS website to designate which account to have your payment deposited in. The IRS will deposit the payment to the first bank account listed on Form 8888, Allocation of Refund. If your direct deposit is rejected, your payment will be mailed to the address on file with the IRS.
We claimed our 19-year-old son as a dependent in 2018. He is in college now, and we have student loans. Our household of five earns less than $75,000 a year. Am I better off claiming him as a dependent and not receiving the $1,200 from the stimulus check, or should I file separate 2019 taxes for him so he would receive the $1,200?
The IRS website lists an individual who can be claimed as a dependent on someone else’s tax return as being ineligible for the Economic Impact Payment. If you provide more than half of your son’s financial support, then he is a dependent. If he has a filing requirement, he must check the box on the tax return to indicate that someone else can claim him as a dependent.
My husband receives U.S. Railroad Retirement Board benefits. We file taxes every year, but if we have a refund, it comes in the mail. Since our return doesn't go to direct deposit, will I receive mine with his? If not, what do I need to do?
If you filed your 2019 or 2018 tax return but did not receive a refund by direct deposit, your payment will be mailed to the address the IRS has on file even if you also receive Railroad Retirement benefits by direct deposit.
You have the opportunity to provide bank account information through the IRS Get My Payment tool before your payment is processed. Direct deposit is the fastest way to receive your payment.
Is the stimulus check just an advance on our 2020 tax refunds? If so, can we opt out?
The stimulus checks are independent of any other tax refunds and are not a pre-payment of a refund. Once they are issued, they do not have to be repaid, nor do they reduce your 2020 tax refund.
My husband and I owe taxes. Are we eligible for the stimulus check?
You can still receive a stimulus check if you have outstanding tax liabilities. As long as your income level qualifies, and you meet the other criteria of having an address, banking info on file with the IRS, etc., you will receive a stimulus check.
My former husband owes back child support. Since he’s delinquent, will he receive a stimulus check? If not, what happens to the $1,200?
In the CARES Act, Congress specified that past-due child support is the only obligation that would subject stimulus payments to the Treasury Offset Program (TOP). The TOP will still be legally allowed to seize your stimulus payment if you’re behind on child support and your state has referred those payments to TOP for collection.
For divorced couples with children who alternate filing with their children as dependents, who will get the stimulus check?
The checks are based on the dependents claimed on the tax return the IRS uses to calculate the stimulus amount. As such, whoever claimed the children in that year will receive the $500 payment for that child.
Will people with disabilities who receive SSI/SSDI and don't file taxes receive a stimulus check?
Yes, they will. The IRS has their mailing and bank information on file from the Social Security Administration, and no further action is required to receive the stimulus check. If you receive SSI/SSDI and have dependents, you will have to go online to the IRS website to provide your dependent’s information so that you will receive the maximum stimulus payment for your family.
My husband passed away in December, and we jointly filed 2018 and 2019 taxes. I got a $2,400 stimulus check. Do I have to repay $1,200 of it?
As it stands today, the IRS is only looking at the filing status and Adjusted Gross Income of taxpayers for calendar 2019 (or 2018 if necessary). The IRS is not requiring any repayment once stimulus money is received based on the tax return relied on to determine the amount. As such, if you receive $2,400 based on the tax return the IRS reviewed, you will not be required to repay any of it.
If I have a payment plan with the IRS and payments are being debited from my bank account, do I need to do anything further to get my stimulus check?
No, nothing further is needed as the IRS payment plan and the IRS stimulus checks are not interrelated. The CARES Act actually suspends almost all efforts to garnish tax refunds to repay debts, including those to the IRS. If you contact the IRS, they are offering to suspend installment plan payments from April 1 – July 15. If you would like to take this option, we would recommend contacting your bank to stop the automatic draft of payments to any payment plan.
Can people experiencing homelessness qualify for a stimulus check if they don't have a mailing address?
While anyone can qualify for the stimulus check, the individual must fall under certain income limitations, have a valid Social Security Number and cannot be claimed as a dependent by someone else. However, individuals will need to have their bank account information and mailing address on file with the IRS to receive payment, which can be updated online. Those who are not sure if they have this information on file with the IRS or have not filed an income tax in the past two years can update their information with the IRS at irs.gov/coronavirus/economic-impact-payments.
As such, if a person experiencing homelessness does not have a current address and does not have access to one by way of a friend or family member, we would recommend they contact their nearest homeless support organization to see if they can help. The same advice applies if they do not have access to a bank account.
Can college students who have jobs and filed taxes for 2019 receive a stimulus check?
If children, including some college students, can be claimed as a dependent on someone else’s return, they are not eligible for the stimulus check. Given this, any college student claimed as a dependent would not receive a check. However, if you are not claimed as a dependent (whether you are a college student or not), you could qualify if you meet the other criteria. This has been a common question among our clients, and you can find this and additional answers like these at our COVID-19 Resource Center at our website anderscpa.com.
If I had my taxes prepared by a company that issues a refund to a debit card, will my stimulus check be deposited to it or to my checking account?
While it appears the IRS contemplated issuing stimulus payments via debit card, it was decided the stimulus checks will only be directly deposited into bank accounts on file with the IRS or mailed to taxpayers at their last address of record if they do not have a bank account on file with the IRS. As such, if your last bank account of record with the IRS is the account used by your tax preparer’s bank for your debit card refund, our advice is to update your bank account information on file with the IRS to have your stimulus check directed to a different account. This can be done on the IRS Economic Impact Payments website.