Congress is set to pass a $2.2 trillion stimulus package on Friday. On Wednesday, President Trump announced that it would include $300 million in direct payments to individuals. The plan will give single people with incomes below $75,000, $1,200 in direct deposit payments.
This is happening in the wake of the COVID-19 pandemic. Married couples will receive $2,400 while parents will get an additional $500 for each child under 17. Payments will incrementally decline for those making over $75,000 while those who make over $99,000 will not be eligible. Importantly, Social Security recipients and those with non-taxable income will also get checks. In total, the benefits apply to 90% of American households.
The IRS will send the $2.2 trillion stimulus package money based on whatever information they have about American taxpayers. Direct deposit payments are expected to arrive three to four weeks after the bill passes Congress. However, physical checks will likely show up much later. In 2009, the stimulus checks took three months to show up. 2019 tax payments will be used to determine the amount of the payment to each recipient. If no taxes were paid in 2019, 2018 payment data will be used. If a payer hasn’t filed in the past two years, they need to pay now and make sure their information is up to date with the IRS.
Those who want their $2.2 trillion stimulus package payments faster should register for direct deposit with the IRS or indicate direct deposit as their refund method on their tax forms. Given that the World Trade Organization’s prediction that this recession is likely to be worse than the 2008 crisis, tax payers will need all the financial help we can get.