Here are the IRS's answers to some of the most common questions about the Economic Impact Payments (commonly referred to as the 2020 Stimulus Checks):
Is this payment considered taxable income?
No, the payment is not income and taxpayers will not owe tax on it. The payment will not reduce a taxpayer's refund or increase the amount owed when the taxpayer files a 2020 tax return next year. A payment also will not affect income for purposes of determining eligibility for federal government assistance or benefit programs.
Can individuals use the IRS's Get My Payment tool to check their payment status if they receive a Form SSA-1099 or RRB-1099?
Yes, these individuals will be able to use the IRS's Get My Payment to check the status of their payment after verifying their identity by answering the required security questions.
If my bank account information has changed since my last filed tax return, can I use the IRS's Get My Payment tool to update my bank account information?
To help protect against potential fraud, the IRS's Get My Payment tool also does not allow individuals to change direct deposit bank account information already on file with the IRS. If, however, the IRS issues a direct deposit based on the account information that the taxpayer provided on their tax return and the bank information is now invalid or the account has been closed, the bank will reject the deposit. The agency will then mail payment as soon as possible to the address they have on file. The Get My Payment tool will be updated to reflect the date a payment will be mailed. Note, though, it may take up to 14 days to receive the payment based on standard mailing time.
Where can people get more information?
Taxpayers who are required to file a tax return, can go to IRS Free File to file electronically. If not required to file a return, taxpayers should go to the IRS's Non-Filers: Enter Payment Info Here tool and submit their information to receive an Economic Impact Payment.
For the complete lists of FAQs, visit the IRS's Economic Impact Payment and Get My Payment tool pages on IRS.gov. The IRS updates these FAQs regularly and encourages individuals to share this information with family and friends.
COVID Tax Tip 2020-55 #IRSTaxTip