Economic Impact Payments (U.S. Only)
Economic Impact Payments – (U.S.)
April 1, 2020
The Internal Revenue Service (IRS) has indicated that the distribution of economic impact payments will begin in the next three weeks and will be distributed automatically, with no action required for most people. This communication answers a few questions US employees may have about the economic impact payments.
This communication should not be considered tax advice and is intended to provide general information for the benefit of CoorsTek employees.
Who is eligible for the economic impact payment?
This payment will be issued to ALL individual tax filers (except nonresident aliens) whose annual adjusted gross income is below $75,000 for single filers or $150,000 for joint-filers. Rebates are equal to $1,200 per individual or $2,400 for a married couple. There is also a rebate equal to $500 per child under 17.
Reduced checks will go out to individuals making up to $99,000 a year (the payment amount falls by $5 for every $100 in income above $75,000) and completely phases out at $99,000 for single tax filers, and $198,000 for joint tax filers.
People who file as a “head of household” (typically single parents with children) are eligible for a $1,200 check if they have an adjusted gross income up to $112,500 a year. Reduced checks on a sliding scale are available for heads of household earning up to $136,500 annually. Heads of household will also receive an additional $500 per child under 17.
Use the Stimulus Check Calculator to see how much you will receive.
What action do I need to take to receive the economic impact payment?
There is no action needed by most people at this time. The IRS will calculate and automatically send the economic impact payment to those eligible by issuing a check or a direct deposit if a bank account was listed on your most recent tax return.
When will I receive my payment?
The IRS will begin distribution in the next three weeks. It may take up to eight weeks for all payments to be issued.
Can I access my retirement funds if necessary?
Individuals will also have the ability to request a withdrawal of their retirement funds of up to $100,000 for emergency coronavirus related expenses based on a self-certification. This withdrawal would not be subject to the ten percent early withdrawal penalty. The withdrawal would be subject to income tax, but such taxes would generally be paid over three years. Please reach out directly to Fidelity (401k.com) to review your options and obtain detailed information.
Where can I get more information?
This communication should not be considered tax advice. Check IRS.gov or IRS.gov/coronavirus for the latest information or consult with your personal tax advisor.