As required by the CARES Act, the Treasury Department and the IRS will begin issuing economic impact payments to Americans next week. To help facilitate the timely disbursement of these payments, they have launched a new web tool for individuals who do not normally file a tax return to input their payment information. The tool is designed for those who did not file a tax return for 2018 or 2019 and who do not receive Social Security retirement or disability benefits or Railroad Retirement benefits.
The tool can also be used by lower–income wage earners who haven’t filed a tax return because they are under the normal income limits for filing; veteran benefit beneficiaries and Supplemental Security Income recipients; and Social Security, Social Security Disability Insurance and Railroad Retirement beneficiaries with qualifying dependents. The IRS noted that individuals who have been claimed by someone else as a dependent on a tax return will not be eligible to receive payments.
The IRS said it also plans to launch a second online tool by April 17 that will enable consumers to check the status of their payment, including the date their payment is scheduled to be deposited in their bank account or mailed to them. The Get My Payment Tool will also provide an option for consumers to provide their bank account information so they can receive payments quickly.
Since the CARES Act was passed, ABA has urged the IRS and Treasury to maximize the use of electronic disbursement methods when issuing economic impact payments rather than issuing paper checks. The association has created several new resources for banks to help educate their customers about their economic impact payments. These resources include a series of commonly asked questions—which will be continually updated with the latest information from the Treasury Department—as well as consumer tips for avoiding fraud scams related to the economic impact payments.
