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The IRS may send money electronically to taxpayers who file direct deposit statements or bank account information. The government will send paper checks or debit cards to households for which the Treasury cannot determine a bank account.
The IRS will use information on 2020 tax returns to determine eligibility and check the amount. The agency will use the 2019 record for households that have not yet filed their taxes this year, including people who used the “no-request portal” for previous payment rounds.
The legislation provides full payments of $ 1,400 to those with adjusted gross income of up to $ 75,000 for individuals, $ 112,500 for heads of households, and $ 150,000 for married couples filing a joint tax return.
Payments are reduced for those with incomes above these thresholds. Payments will be limited to people earning $ 80,000, heads of households with $ 120,000 and married couples with $ 160,000.
For those who lost their jobs, the time to file a tax return has been complicated by a further reduction in unemployment benefit taxes.
The relief measure exempts taxes of up to $ 10,200 from unemployment benefits people received last year. This provides an incentive to delay filing tax returns by 2020. However, since the loss of income in 2020 may make someone eligible for stimulus control, there may be a need to file a tax return quickly to reflect that income to the IRS.