Stimulus checks: What you need to know

I want to thank everyone who was able to participate in our CA-39 coronavirus telephone town hall on Wednesday. We had a great turnout, and I was grateful to have the opportunity to answer questions and provide updates. If you were unable to join us, you can listen to it here.

A big topic that came up repeatedly during the town hall was the stimulus checks. Earlier last week, the IRS and Treasury Department started sending checks to people who have added their direct deposit information to their 2018 or 2019 tax returns. For those of you who receive tax refunds by mail, you will receive a paper check.

When will you receive your payment?

Regarding timing, the checks going to direct deposit are being distributed on an ongoing basis. So please be patient as the IRS and Treasury continue to send them. The IRS has informed Congress they plan to begin issuing paper checks to individuals beginning the week of May 4th at a rate of five million checks per week, which could take up to 20 weeks to get all the checks out.

To help speed up your receipt of the payment, the IRS is encouraging as many individuals as possible to provide direct deposit information, rather than opt for the mailed paper check. To provide direct payment information, you can:

• File your 2019 tax return and include the requested banking information on the return if you have not yet filed your 2019 tax return;
• Provide your banking information through the Non-Filers: Enter Payment Info portal if you are an individual not required to file a federal tax return;
• Use the Get My Payment portal to provide bank information if you have already filed a return without providing this information.

Are Social Security beneficiaries eligible? How will they receive payment?

Social Security recipients are eligible for the rebate payments (subject to the income thresholds above) and will NOT be required to file a return. Recipients will receive their rebate just as they would their Social Security benefits.

Do stimulus checks need to be repaid? 

No, stimulus checks do not need to be repaid. If an individual experienced an income gain in 2020 or if they have fewer dependents under 17, they will not need to repay any portion of the rebate that they received. If an individual experienced an income loss in 2020 or if they have an increase in family size, they may be able to claim an additional credit for the difference when the individual files their 2020 tax federal income tax return in 2021.

Are stimulus checks subject to federal income tax? 

No. The stimulus checks are federal income tax refunds and are not subject to federal income tax.

How will a person who has recently moved access stimulus checks? 

If the person provided direct deposit information on their 2019 or 2018 tax return, the IRS will use that information to make the payment rather than mailing a paper check. If the person did not provide direct deposit information on their 2019 or 2018 return, you can provide your bank information using the Get My Payment portal.

As always, please reach out to my office if you have any questions.

I am humbled to serve you in Congress.

Take care,

Gilbert R. Cisneros, Jr.
Member of Congress