Many Americans will soon receive direct payments from the federal government after the U.S. Senate passed a $2.2 trillion rescue package late Wednesday to combat the economic fallout from the coronavirus pandemic. The House was expected to pass the measure Friday, the largest economic stimulus in modern American history.
The money could especially help Philadelphia, the nation’s poorest big city, where many people work in hotel, airline, and restaurant industries ravaged by the halt in economic activity.
“We have more people that are going to need these checks,” said Ron Anderson, dean of Temple University’s Fox School of Business. "These checks are going to be important for them to pay rent, to get groceries, just to keep the day-to-day things going on. So this is really important to Philadelphia.”
Here are answers to some common questions about the coronavirus stimulus checks:
Most residents would receive $1,200. Under the bill, single adults who make an adjusted gross income of $75,000 or less will collect the full $1,200. Those filing as the head of a household and earning up to $112,500 could get the full amount, too. Married couples making up to $150,000 would receive a total of $2,400. Families would also get $500 per child.
For those earning more than those thresholds, the payments decrease by $5 for each $100 that a taxpayer’s income exceeds the threshold. The payments completely phase out for individuals making more than $99,000, $146,500 for head-of-household filers, and $198,000 for married couples.
No. The Internal Revenue Service would wire payments to people’s bank accounts using information from their 2019 or 2018 tax returns. For those who have not filed for 2018 and 2019, the IRS has said it will use information from the Social Security Administration to send checks by mail, according to the office of. Sen. Pat Toomey (R., Pa.).
The best way to ensure you get a check is to file a 2019 tax return.
The payments could go out as soon as early April, Toomey said.
But for those who don’t have a direct deposit account on file with the IRS, it could take as long as four months to receive a check in the mail, according to reports.
Under the bill, the IRS would notify you by mail within weeks after your payment was disbursed. The notice would include how the payment was made and contact information at the IRS to report any missing payments.
Just one. Congress would have to take additional action for another round of checks to be sent.
No, they are an advanced refunding of a tax credit.