WASHINGTON (AP) – The federal government expects to make payments to millions of Americans under the new economic law from mid-April. However, some people without direct deposit information may receive checks from The Associated Press in mid-August or later, according to a notice they received.
The House Ways and Means Committee document states that in mid-April, probably in the week of April 13, the IRS will make approximately 60 million direct payments to Americans. The IRS has direct deposit information for these individuals from their 2018 or 2019 tax returns.
From the week of May 4, the IRS will begin issuing checks to individuals, the AP received memo on Thursday. The paper checks are issued at a rate of approximately 5 million per week, which means that it may take up to 20 weeks for all checks to be issued. This schedule would delay some reviews until the week of August 17th.
Treasury Secretary Steven Mnuchin said Thursday, while he originally committed to making payments within three weeks of the law being passed, “I am now committed to two weeks. We are meeting our commitments.”
The IRS he is monitoring will ensure that “the first money will be in people’s accounts within two weeks,” Mnuchin said during a White House briefing.
“This money is of no use to people if it appears in four months,” he added.
The Committee’s democratic majority memo states that the schedule it released on Thursday was based on “extensive talks with the IRS and the Treasury”. The schedule may change given the ongoing discussions between Congress and the Trump administration.
“The committee continues to focus on ensuring that all eligible Americans receive their payment as soon as possible,” the memo said.
The payments are part of the $ 2.2 trillion bailout package signed by President Donald Trump on March 27 to address the economic consequences of the corona virus outbreak.
Most people don’t have to do anything to get the money.
To reverse an earlier position, the government said this week that social security beneficiaries who don’t need to file a tax return don’t need to file a very simplified tax return to get their government stimulus check. The finance department announced Wednesday that the IRS will use the information on Form SSA-1099 and Form RRB-1099 to generate the $ 1,200 checks to social security recipients who didn’t file tax returns in 2018 or 2019.
The checks are issued in reverse order of adjusted gross income, which means that people with the lowest income receive payments first.
The committee estimates that there are 150 to 170 million US taxpayers, so 90 to 110 million taxpayers are either filers or non-filers, but the IRS wants information about them.
Filers must receive a paper check unless their direct deposit information can be updated on the IRS portal. Non-applicants may need to submit the simple tax return and may include direct deposit information if they want to get their discounts quickly. The IRS encourages taxpayers to submit their 2019 tax returns as soon as possible.
The IRS expects to set up a portal in late April or early May through which taxpayers can find out the status of their discount payment and update the information about direct payment, the memo says.
Anyone who earns gross adjusted income of up to $ 75,000 and has a social security number will receive a $ 1,200 payment. This means that married couples filing a joint tax return will receive full payment – $ 2,400 – if their adjusted gross income that they show through their taxes is less than $ 150,000.
Payment is steadily falling for those who earn more. Individuals who earn more than $ 99,000 or $ 198,000 for joint applicants are not eligible. The thresholds differ slightly for those who submit as head of household.
Parents also receive $ 500 for each eligible child.
The IRS did not respond to a request for comment on Thursday.