Last week, Congress passed a sweeping $2 trillion coronavirus relief bill, which includes direct payments to individuals to help Alabama families and workers meet the economic challenges caused by this virus. Extraordinary times require an extraordinary federal response.
This third coronavirus relief bill includes:
• Direct payments of up to $1,200 for individuals that make $75,000 or less and head of households that make less than $112,500 a year.
• Joint tax-filers that make $150,000 or less will receive $2,400.
• Families and heads of household will receive an additional $500 per child.
• The Social Security Administration will share information for Social Security (Old-Age, Survivors, and Disability Insurance) beneficiaries with the IRS to help ensure these beneficiaries receive their direct payments,
• Up to 4 months of unemployment insurance and an additional $600 per week in federal benefits; states will be eligible to provide an additional 13 weeks of emergency unemployment benefits to workers.
• Expanded unemployment benefits, which allow access to part-time employees, the self-employed, gig workers and furloughed workers.
• $10 billion for the Small Business Association’s emergency grants of up to $10,000.
Here are a few questions my office has received about the coronavirus direct payments:
- Q: Who is eligible for direct payments?
A: Americans will receive a one-time direct payment of up to $1,200 for individuals that make $75,000 or less and head of households that make less than $112,500 a year. Joint tax-filers that make $150,000 or less will receive $2,400. Families and heads of household will receive an additional $500 per child. These payments will be made to those who do not file taxes and those who receive Social Security benefits.
The payment phases out at higher income levels depending on filing status and number of children (and reaches zero, for example, for a single filer with no children and annual income of $99,000).
- Q: When will the direct payments be distributed?
A: The Internal Revenue Service (IRS) will work to deliver direct payments quickly. For people who filed a federal income tax return in 2018 or 2019, payment processing will be based on payment or address information already on file with the IRS. Electronic distributions will be automatic to an account the payee authorized January 1, 2018 or later. If you did not file income tax in 2018 or 2019,
You may need to contact IRS to fill out a simplified return showing that
you did not owe taxes for this period.
- Q: Do these direct payments need to be repaid?
A: No, direct payments do not need to be repaid.
- Q: How will direct payments be delivered?
A: Direct payments will be delivered automatically—by the IRS—to most Americans who file individual federal income tax returns. When available, electronic direct deposit will be used in place of mailing a physical check.
- Q: Many individuals don’t need to file a tax return. Are non-filers eligible for direct payments?
A: Yes. There is no earned income requirement to be eligible for a direct payments, but non-filers may need to take additional steps to receive their direct payments. The Social Security Administration will share information for Social Security (Old-Age, Survivors, and Disability Insurance) beneficiaries with the IRS to help ensure these beneficiaries receive an automatic payment. The IRS will conduct a public awareness campaign to reach other non-filers and provide them with information on how they can access direct payments.
Many of you still have questions and concerns. Please continue to check in with Congresswoman Sewell’s Official Website Facebook, Twitter and Instagram pages for up to date information.