An estimated 175 million Americans will get stimulus checks with the first payments going out this week or next, according to Larry Kudlow, director of the U.S. National Economic Council. The payments, worth up to $1,200 plus additional $500 per child, are intended to help Americans financially weather job loss, reduced work hours, and other money challenges as large swaths of the country are shut down to curb the coronavirus outbreak.
"The checks from the Treasury and the IRS [will] probably start going out, I think this week, perhaps early next," Kudlow told CNBC.
Kudlow also said glitches that small business have experienced when applying for the relief program will get worked out and told CNBC that the government is supporting the economy by, "liquidity, cash rescue, try to keep the labor force connected to the actual businesses."
While many Americans will start receiving their checks soon, it may take months for others. This depends on what banking information the Internal Revenue Service has on file and other factors. Here's what you need to know about the checks.
When will the stimulus check arrive? It depends.
Treasury Secretary Steven Mnuchin said at a White House briefing last Thursday, that those Americans who have signed up for direct deposit will receive their payment within two weeks.
"Social Security, you'll get it very quickly after that," Mnuchin said. "If we don’t have your information, you'll have a simple web portal, you'll upload it. If we don't have that, we'll send you checks in the mail."
The payments will be deposited directly into your bank account if you received your last tax refund or expect to receive this year's refund that way. You'll also be able to provide your banking details online once a portal is set up, according to the IRS.
Otherwise, checks will be mailed, which could take longer to get to Americans. Adding to the complications, about 6% of U.S. adults — or 12 about 12 million Americans — do not have a checking, savings, or other bank account, according to a 2018 Federal Reserve report.
The New York Times, citing IRS guidelines that detail how Americans who aren't usually required to file tax returns will need to do so to receive payments, noted the guidance "will almost certainly mean longer waits for those who must file new returns to be eligible to receive a stimulus payment."
Americans with the lowest income will get mailed checks first, according to reporting by the Washington Post. Here's the timetable for the first checks, per IRS documents seen by the Post:
- Taxpayers with income up to $10,000: April 24
- Taxpayers with income up to $20,000: May 1
- Taxpayers with income up to $40,000: May 15
The rest of the checks will be issued by gradually increasing income increments each week. Households earning $198,000 who file jointly will get their reduced checks on Sept. 4. The last group of checks will be sent on Sept. 11 to those who don't have tax information on file and had to apply for checks, according to the Washington Post.
Who gets a stimulus check?
Your eligibility is based on your most recent tax return and your adjusted gross income. If you already filed your 2019 taxes, your eligibility will be based on that. If not, the Internal Revenue Service will use your 2018 taxes to determine if you qualify.
Source: Yahoo News