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Some in US may not get coronavirus stimulus checks until August

FOX Business’ Edward Lawrence gives details on upcoming coronavirus relief coming directly to Americans. Video

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The federal government expects to begin making payments to millions of Americans under the new stimulus law in mid-April, but some people without direct deposit information may not get checks until mid-August or later, according to a memo obtained by The Associated Press.

The document from the House Ways and Means Committee says the IRS will make about 60 million payments to Americans through direct deposit in mid-April, likely the week of April 13. The IRS has direct deposit information for these individuals from their 2018 or 2019 tax returns.

For Social Security beneficiaries

The government said Social Security beneficiaries who don’t typically file tax returns will not need to take any action to get their payments.

The IRS will use the information on the Form SSA-1099 and Form RRB-1099 to generate the payments.

Mnuchin indicated that this group would get their cash “very quickly after” the first round of direct deposits, which will be in two weeks.

Beneficiaries will receive their money as they normal receive their Social Security checks – which would appear to mean direct deposits will be issued first, while paper checks could take longer.

Brittany De Lea, FoxBusinss.com staff writer

Then, starting the week of May 4, the IRS will begin issuing paper checks to individuals, says the memo obtained by AP on Thursday. The paper checks will be issued at a rate of about 5 million per week, which means it could take up to 20 weeks to get all the checks out. That timeline would delay some checks until the week of Aug. 17.

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Treasury Secretary Steven Mnuchin said Thursday that while he initially pledged to get payments started within three weeks of the law’s adoption, “I’m now committing to two weeks. We’re delivering on our commitments.”

House Speaker Nancy Pelosi of California signs the Coronavirus Aid, Relief, and Economic Security (CARES) Act after it passed in the House on Capitol Hill, Friday, March 27, 2020, in Washington. (AP Photo/Andrew Harnik)

Taxpayers with direct deposit

Treasury Secretary Steven Mnuchin said on Thursday cash would be put into this group of individuals’ accounts within two weeks and can be expected during the week of April 13.

This includes people who use direct deposit and have filed either their 2018 or 2019 return.

Brittany De Lea, FoxBusinss.com staff writer

The IRS, which he oversees, will ensure that “within two weeks the first money will be in people’s accounts,” Mnuchin said during a White House briefing.

“This money does people no good if it shows up in four months,” he added.

The memo from the committee’s Democratic majority says the timeline it made public Thursday was based on “extensive conversations with the IRS and the Department of Treasury.″ The timeline is subject to change, given ongoing discussions between Congress and the Trump administration.

President Donald Trump listens as Treasury Secretary Steven Mnuchin speaks about the coronavirus in the James Brady Press Briefing Room of the White House, Thursday, April 2, 2020, in Washington. (AP Photo/Alex Brandon)

Taxpayers who file by mail

The IRS is expected to begin issuing paper checks to individuals without direct deposit information on file with the IRS in early May for those who have filed a 2018 or 2019 return. That process will take longer. Some of these taxpayers could be waiting for up to 20 weeks for their cash.

Brittany De Lea, FoxBusinss.com staff writer

“The Committee remains focused on ensuring all eligible Americans receive their payment as quickly as possible,″ the memo says.

The payments are part of the $2.2 trillion rescue package signed into law March 27 by President Donald Trump aimed at combating the economic ravages of the coronavirus outbreak.

Most people don’t need to do anything to get the money.

For those who have not filed

If you have not filed either your 2018 or 2019 returns and you were supposed to, the IRS has indicated that you will not be receiving a payment until you do so. It is encouraging taxpayers to file as soon as possible to get the process underway.

More details on the payments can be found here:

Coronavirus stimulus checks: Who gets money and when?IRS.gov — Economic impact payments: What you need to know

Brittany De Lea, FoxBusinss.com staff writer

Reversing an earlier position, the government said this week that Social Security recipients who are not required to file a tax return will not need to file a very simplified tax return to receive their government stimulus check. The Treasury Department said Wednesday that the IRS will use the information on the Form SSA-1099 and Form RRB-1099 to generate the $1,200 checks to Social Security recipients who did not file tax returns in 2018 or 2019.

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The checks will be issued in reverse order of adjusted gross income, meaning that people with the lowest income will get payments first.

The committee estimates that there are 150 million to 170 million U.S. taxpayers, which leaves 90 million to 110 million taxpayers who are either filers or nonfilers but about whom the IRS wants information.

The filers will need to receive a paper check unless their direct deposit information can be updated in the IRS portal. Nonfilers may need to file the simple tax return and likely include direct deposit information if they want to receive their rebates quickly. The IRS is encouraging taxpayers to file their 2019 returns as soon as possible.

If the IRS still needs information from you:

There is also a group of filers and non-filers from whom the IRS still needs more information.

The agency will soon provide details on how to give it the required information.

It is unclear when these individuals should expect their payments because they are not being processed by the tax agency yet.

Brittany De Lea, FoxBusinss.com staff writer

The IRS expects to create a portal in late April or early May that will allow taxpayers to find out the status of their rebate payment and update direct deposit information, the memo says.

CLICK HERE FOR THE LATEST ON CORONAVIRUS

Anyone earning up to $75,000 in adjusted gross income and who has a Social Security number will receive a $1,200 payment. That means married couples filing joint returns will receive the full payment — $2,400 — if their adjusted gross income, which is what they report on their taxes, is under $150,000.

The payment steadily declines for those who make more. Those earning more than $99,000, or $198,000 for joint filers, are not eligible. The thresholds are slightly different for those who file as a head of household.

Parents will also receive $500 for each qualifying child.

The IRS did not respond to a request for comment Thursday.

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