If you are a low-income person, you may qualify for an economic impact payment. Depending on your situation, you can receive up to $1,200 for an individual or up to $2,400 for a married couple. The payment amount can also vary depending on the number of qualifying children you have. The government will automatically distribute your payment to you, so you won’t need to worry about filing a tax return. The IRS will use your tax filing information to calculate your payment, and it will go directly to your banking account.
If you are not eligible for the Economic Impact Payment, you can still claim the amount on your 2020 tax return. This is called a “recovery rebate” and is available for people who are below the AGI limit. You should also reply to your IRS denial letter within 60 days to receive your payment. It will take some time to process your claim, so you should act quickly. But don’t let this deter you from claiming the money.
In March, Congress passed the CARES Act, a bill that will provide immediate financial assistance to millions of Americans. The CARES Act provides for a one-time direct cash payment of up to $1,400 per adult, $2,800 for married couples filing jointly, and $1,400 for each qualifying child under 17. The new act also lowers the phaseout threshold for the Economic Impact Payment, so many families will qualify sooner than before.
