Treasury Secretary Steven Mnuhcin said that 80 million Americans will receive stimulus checks via direct deposit by Wednesday. Mnuchin added that those who do not receive their check by Wednesday will need to enter their banking information to the IRS if they want their check via direct deposit.
The Treasury Department said on Saturday that it had sent out the first batch of payments. On Monday, some Americans said they have the deposit available in their bank account.
Previously, the IRS said an online tool that will help speed up getting stimulus checks to many Americans will be launched on April 17. Mnuchin suggested the website will be available on Wednesday.
The website will be for those who do not have their bank account information on file with the IRS. The IRS will use the information to distribute checks via direct deposit.
The online tool will also allow for Americans to check the status of their stimulus check.
Last week, the IRS released an online tool for those who have not filed taxes or are on Social Security to obtain a stimulus check.
Some people believe that the stimulus payments are taxable, or must be paid back next year. According to CNBC, that is not true. CNBC says that the stimulus checks are not taxable income, and are structured as refundable tax credits. That is why even people who do not typically file tax returns qualify for these payments, according to the Tax Foundation, an independent think tank.
The financial website Money.com also addressed the issue and posted: "Will this eat into my tax refund for 2020? No. The ‘advance’ you’ve been hearing about is in reference to a special tax credit that’ll appear on the tax return you file in 2021 for the 2020 tax year — a tax credit that wouldn’t have been there if it wasn’t for these stimulus checks. So the Internal Revenue Service isn’t giving you some of your 2020 tax refund upfront. The stimulus check will be in addition to what you would’ve otherwise expected.Will it count towards my taxable income for 2020? No. This money is not considered income. It won’t be taxable and it won’t affect your income tax bracket for 2020."
The IRS website says that U.S. residents will receive the Economic Impact Payment of $1,200 for individual or head of household filers, and $2,400 for married filing jointly if they are not a dependent of another taxpayer and have a work eligible Social Security number with adjusted gross income up to:
Eligible retirees and recipients of Social Security, Railroad Retirement, disability or veterans' benefits as well as taxpayers who do not make enough money to normally have to file a tax return will receive a payment. This also includes those who have no income, as well as those whose income comes entirely from certain benefit programs, such as Supplemental Security Income benefits.
Retirees who receive either Social Security retirement or Railroad Retirement benefits will also receive payments automatically.
Who is eligible for the Economic Impact Payment? U.S. citizens or resident aliens who:
Who will receive the Economic Impact Payment automatically without taking additional steps? Most eligible U.S. taxpayers will automatically receive their Economic Impact Payments including:
Who should use Non-Filers: Enter Payment Info to provide additional information to receive the Economic Impact Payment? Eligible U.S. citizens or permanent residents who: