IRS: COVID-19 monetary assistance now available for Americans

WHAT YOU NEED TO KNOW:

• The roll out of cash aid assistance, deposited directly in the bank accounts of Americans as part of the government assistance due to the COVID-19 crisis, had already started — as announced by the Internal Revenue Service (IRS) via tweet on Saturday.
• The cash relief assistance comes from the $2 trillion bill enacted by the US Congress signed by President Donald Trump.
• Trump welcomes the idea of having a second round of monetary assistance as House Speaker Nancy Pelosi told CNN last month that there may be more direct payments in another bill.

Americans have started to receive cash relief assistance in accordance with the $2 trillion bill enacted by the Congress to cope with the economic fallout due to the coronavirus pandemic, according to the Internal Revenue Service (IRS).

In a tweet on Saturday, the agency said “#IRS deposited the first Economic Impact Payments into taxpayers’ bank accounts today. We know many people are anxious to get their payments; we’ll continue issuing them as fast as we can.”

The relief assistance is directly deposited to the accounts of those who are registered with the IRS. However, for those who don’t have existing accounts, it could take months before checks could be sent. An online tool is expected to be rolled out to assist them.

The COVID-19 aid payment is based on the federal tax returns for 2019 or 2018. For those who do not normally file taxes, the IRS is directing them to an online tool to ensure they will be included. According to the IRS, this excludes Social Security recipients and railroad retirees.

Americans who earned less than $75,000 in 2019 will be eligible for the $1,200 full payment. Couples who filed together and earned less than $150,000 will get $2,400 assistance. A person declared as the “head of household” and earned $112,500 or less will receive $1,200. An additional $500 will be added for every child in the household.

For those who earned more than $75,000, $5 will be less for every $100 additional income that exceeds the said cutoff. There will be no payment for an individual who earned $99,000 or more and for couples earning $198,000 and above.

The maximum payment for a family of four is $3,400 — payment is not taxable.

People who owe back taxes and other debts to the government are not disqualified from receiving cash relief assistance. Americans, who are overdue on child support though, may get reduced or eliminated cash payments.

The direct payments authorized by the CARES Act are only a one-time deposit, but an additional legislation could be enacted in the future — an idea which President Donald Trump likes.

In March, House Speaker Nancy Pelosi, D-Calif., told CNN “we think we’ll get more direct payments in another bill.”

Source: NBC News