Treasury Dept. Begins Distributing New COVID-19 Economic Impact Payments

What’s the story?

• Treasury Secretary Steven Mnuchin announced Tuesday that the agency has begun the distribution of the new coronavirus (COVID-19) economic impact payments to eligible Americans. In a pair of tweets, Mnuchin explained:

“@USTreasury has delivered a payment file to the @FederalReserve for Americans’ Economic Impact Payments. These payments may begin to arrive in some accounts by direct deposit as early as tonight and will continue into next week

Paper checks will begin to be mailed tomorrow. Later this week, you can check the status of your payment at IRS.gov/GetMyPayment.”

Who will receive economic impact payments?

• Under the Consolidated Appropriations Act, which was signed into law by President Donald Trump on Sunday, Americans can receive up to $600 for each adult and child in a household depending on their income. 
• Payments start to phase-out for individual taxpayers with an adjusted gross income (AGI) of more than $75,000 and for married filers over $150,000. It decreases by $5 for each $100 earned over that threshold, and phases out entirely for individuals who earned over $99,000 and married filers over $198,000.
• The AGI is based on a person or household’s most recent tax return ― either the 2019 return if it’s been filed or the 2018 return. You can find your AGI in Box 8b of the 2019 federal 1040 tax return form, or Box 7 of the 2018 return.
• The eligibility criteria for the latest round of economic impact payments are the same as what was enacted under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, so if you received a payment earlier this year you will receive another in the days and weeks to come.
• Congress is currently debating an increase to the $600 economic impact payment under the latest relief bill to as much as $2,000 for an individual. If it enacts legislation to that effect, another round of payments would likely be sent to those who receive a payment based on the $600 figure.

For more information on using the IRS “Get My Payment” tool, check it out here or read our guide to the tool.

To get your payment sooner, sign up for direct deposit with the IRS, and check out our explainer if needed.

— Eric Revell

(Photo Credit: iStock.com / LPETTET)