How The IRS Will Automatically Deposit and Calculate Stimulus Payments.

The IRS will use your 2019 tax return, if you’ve already filed it, or your 2018 return to calculate the amount of your payment. The payments would not be subject to tax, and those who owe back taxes will still get the payouts. Individuals are due up to $1,200 and couples will receive up to $2,400 — plus $500 per child. But payments start phasing out for individuals with adjusted gross incomes of more than $75,000. The amount will then be reduced by $5 for every additional $100 of adjusted gross income, and those making more than $99,000 will not receive anything. The income thresholds would be doubled for couples. Here’s what we know so far about how it will work: Direct deposits will go out automatically The IRS says that payments will go out automatically to those who authorized a direct deposit for their refunds on either their 2019 or 2018 tax return. The money will be deposited directly into the same banking account and the taxpayer doesn’t have to take any action to receive it. That should cover a lot of people. Last year, about 92 million people received refunds via direct deposit. That represents about 82% of people who received refunds and nearly 60% of all tax filers. “I think it’s reasonable to think those payments can be made in three weeks,” said Nicole Kaeding, an economist with the National Taxpayers Union Foundation. Who will have to take action? For those who haven’t filed a return for either 2019 or 2018, the IRS urges them to do so quickly.