US Tax Tips: Obtaining the Economic Impact Payment
Author: Lily Chow
Our clients have recently raised queries on the Economic Impact Payment (EIP) pursuant to the COVID-19 relief issued by the IRS, such as:
- Am I eligible for the economic impact payment?
- How do I receive the payment?
- Do I need to apply for the payment?
In general, U.S. citizens and U.S. resident aliens will receive the EIP of:
- US$1,200 for individuals or head of household (HOH) filers; and
- US$2,400 for married filing jointly (MFJ), if they are not a dependent of another taxpayer and have an eligible Social Security Number with adjusted gross income up to:
- US$75,000 for individuals, if their filing status is single or married filing separately (MFS);
- US$112,500 for HOH filers; and
- US$150,000 for MFJ.
The EIP will be reduced if the adjusted gross income (AGI) for the eligible taxpayers is between:
- US$75,000 and US$99,000 if their filing status is single or MFS;
- US$112,500 and US$136,500 for HOH; or
- US$150,000 and US$198,000 for MFJ.
Those who are not required to file a tax return, such as social Security recipients, railroad retirees, those with little or no income or those who don’t receive other federal benefits are also eligible for the Economic Impact Payment. They will need to register with the Non-Filer tool on IRS.gov as soon as possible.
For eligible taxpayers who filed tax returns for the tax years 2019 or 2018, payments will be received automatically via mail or direct deposit, if the taxpayer has previously provided bank information to the IRS. Those who have still not received payment, the IRS have released a COVID Tax Tip 2020-61 (see below) stating the EIP can be obtained by prepaid debit card.
Recipients of the EIP by prepaid debit card can do the following with no additional charge:
- Instore and online purchases at any retail location where Visa is accepted;
- Cash withdrawal from in-network ATMs;
- Funds transfer to personal bank accounts; and
- Access the card balance easily online via mobile app or phone banking.
Please refer to the link above for additional information if you are still waiting to receive the EIP from the IRS.
As always, please do not hesitate to contact us at tax@zetland.biz via email should you need assistance on the US tax filing. Please note that 15 July 2020 is the extended due date for filing and paying the 2019 US tax return.
