Where is my government cheese?

The IRS tweeted Saturday that it had begun depositing the economic impact payments into taxpayers’ bank accounts and would be working to get them out as fast as possible. The one-time payments were approved by Congress as part of an emergency relief package intended to combat the economic damage from the coronavirus pandemic.

Although high-income tax filers, like St Johns County Sheriff David Shoar, are excluded, as is anyone without a valid Social Security number, unless you are claimed as a dependent on someone else’s return, such as an adult child or student, direct deposits began this weekend and the government will mail a check to the others.

The Treasury said that tens of millions will receive direct deposit payments by Wednesday. Payments for Historic City News subscribers will arrive via direct deposit if the taxpayer included the relevant information on their tax return filed this year or last.

YOU SHOULD GET THE FOLLOWING PAYMENT:

• Any adult earning up to $75,000 in adjusted gross income who has a valid Social Security number will receive a $1,200 payment.
• The payment steadily declines for those who make more and phases out for those who earn more than $99,000. For married couples, both adults receive $1,200, with the phase-out starting at $150,000 of income and falling to zero for couples who earn $198,000.
• Parents will also get payments of $500 for each eligible child; this is generally those 16 years old or younger.
• For heads of household with one child, the benefit starts to decline at $112,500 and falls to zero at $136,500.
• Even those who only receive Social Security or other government benefit programs can receive a check.

The exact timing of when people get their money depends on a few factors, such as income and payment delivery method.  All payments will be made based on income, with lower-income individuals receiving payment first.

It’s a tough wait for those who are struggling financially.  However, the Treasury and the IRS need to sort through a tremendous amount of data and create a complex distribution method plan quite quickly, said Mark Mazur, director of the nonprofit Tax Policy Center. The IRS’ outdated technology could also slow things down.

“For the vast majority of people this will work, it may not be as fast as they may like but it will work,” Mazur said.

Historic City News has previously reported on Another program overseen by Treasury, the Paycheck Protection Program for small businesses. It also began issuing payments over the weekend.