CARES Act: When to expect stimulus checks in 2020 and how

when to expect stimulus checks 2020 — image source

The Internal Revenue System (IRS) made an announcement on when to expect stimulus checks in 2020.

The initial series of economic stimulus payments will be sent to some 60 million Americans starting April 13, 2020, Treasury Department and IRS officials told the House Ways and Means Committee.

The stimulus checks will cost up to $1,200 apiece. The public can expect to receive direct payments.

The US government is rolling out this program to assist individuals who are struggling as the coronavirus pandemic continues. People with the lowest incomes are expected to receive their checks first.

During a White House coronavirus briefing, Treasury Secretary Steven Mnuchin explained that payments would be released within two weeks to people whose direct deposit information are on file with the government.

Meanwhile, paper checks would be released in May to people who do not have direct deposit details on file with the IRS. There would be five million checks that will be distributed weekly.

Individuals with no direct deposit details already on file can also send their information to the IRS either through an internet portal which IRS may launch late April or in early May. They can also file a so-called simple tax return the IRS plans to issue in the coming weeks.

The 2019 tax return, if already filed, or the 2018 return will be the basis of IRS in calculating the amount of one's payment. The payments would not be tax,ed and those who owe back taxes can still benefit from the payouts.

Filers will be asked to enter their names, Social Security numbers, information on dependents and deposit information.

Social Security beneficiaries without tax returns can automatically receive their payments just as they would their Social Security benefits. The policy comes after the Treasury Department and IRS reversed initial instructions that they would have to process simplified tax returns.

According to a house memo obtained by CNN, US President Donald Trump's administration officials told lawmakers it could take up to 20 weeks for all of the stimulus checks to be sent to their recipients.

"I am assuring the American public, they need the money now," Mnuchin said.

How much stimulus money one can get

Americans will receive up to $1,200 while couples will enjoy $2,400 plus $500 per child. Payments will be reduced for individuals with adjusted gross incomes of more than $75,000.

The amount will deducted with $5 for every additional $100 of adjusted gross income. Meanwhile, those earning more than $99,000 will not get anything.

Direct deposits

The stimulus checks will be deposited directly into the same banking account of the individual. The taxpayer does not have to take any action to claim it.

"I think it's reasonable to think those payments can be made in three weeks," said Nicole Kaeding, an economist with the National Taxpayers Union Foundation.

However, for those who have not filed a return for either 2019 or 2018, the IRS encourages them to do so as soon as possible.

"An area of big concern is how much administrative burden we're putting on individuals to get these payments. We should be limiting it as much as possible," said Kyle Pomerleau, a resident fellow at the American Enterprise Institute, where he studies federal tax policy.