Everything You Need to Know About the COVID-19 Stimulus and Its Impacts

• Author: Bryan Miller
• Posted: 2024-09-06

You likely have heard lots of news on the COVID-19 stimulus package put together by Congress. Though the final bill signed by President Trump is thousands of pages, most Americans are most interested in one item: the so-called "stimulus checks", though the official name for the money is "Economic Impact Payments".

There was a good amount of confusion surrounding who would qualify, how to qualify, when money would come in, and what the final amount would be. This is largely because many lawmakers took stabs at their own versions of the bill. First, we'll review the amounts you should expect if you haven't already received your payments, as well as what to do if you believe you qualify but haven't received one.

The Basic Information

The final conclusion was that the Economic Impact Payment would be $1,200 for a single person, $2,400 for married couples, and $1,800 for those who qualify as "Head of Household", meaning an adult who has a dependent living with them. Most taxpayers qualify for these payments. The IRS stated that the payment date for qualifying Americans for whom the agency has direct deposit information was April 15, 2020, though some may see it come in later.Initially, the bill excluded Social Security recipients.

The final income limits are $75,000 for a single person, $150,000 for married couples, and $120,000 for heads of households. If your prior tax returns show an income higher than this, you will not receive a check until your 2020 return with an income under this limit is filed.

Who Doesn't Qualify

Non-resident immigrants who are not lawfully preset in the United States do not qualify for these payments. College students who are adults but still claimed as dependents by their parents also don't qualify. Minors also do not qualify; as the federal age of majority is 18, this is the minimum age cutoff to receive the payment.

To clarify, even those who didn't file tax returns recently may qualify. We'll discuss that a bit more in the next section.

I Qualify But Haven't Seen Money

There are several reasons you may not see your Economic Impact Payment quite yet. First, there have been some ACH issues among many banks causing delays due to the sheer volume of payments.

Second, the IRS bases your income eligibility by your 2019 tax return information, or your 2018 tax return information if you haven't yet filed your 2019 federal taxes. Technically, however, the income eligibility is based on what you make in 2020. This means that if you do qualify but then make over the limit this year, you may need to pay some of it back at tax season.

Another reason could be that the IRS doesn't have your direct deposit information. These payments are getting processed first. Paper check payments to last known addresses of individuals are not getting sent out until the middle of May 2020. You'll still get your payment. However, if you've moved recently, ensure that you've set up USPS address forwarding so you get your check.

Tools to Track Your Money

Since so many Americans are impacted by this and in desperate need of money to pay their bills, the IRS has set up a website located here where you can see updates related to COVID-19 stimulus payments.

There is a tool there where you can check to see if you're eligible or not. The IRS has also promised to release a "Track My Payment" tool no later than the end of the business day on April 17, 2020. This will allow individuals to diagnose specific issues and guide them on what to do in order to get the payment.

What Not to Do

If you haven't yet received your payment, you're probably understandably upset. Unfortunately, the IRS is already overwhelmed with calls asking for payment statuses that their employees cannot answer at this time. As you'll see when you click on the link above, their site has scattered messages requesting that you do not call them at this time. They simply ask you to wait for the "Track My Payment" tool, which will be fully automated.

Key Takeaways

We're in unprecedented times, and this stimulus is of an unprecedented size. There should be some glitches expected. If you're in desperate need of money and haven't received your payment, look up charities in your area or see if you're eligible for grants or unemployment money.