Economic Impact Payments

Following this week’s signing of the Economic Stimulus Package into law, the Federal Government released information on the distribution of Economic Impact Payments (EIP) to individuals and families. Here is what we know:

• Payments may start arriving at banks as early as this week.
• Many of the EIP transactions will be sent as ACH payments; however, if the IRS does not have account information on file for Direct Deposit, then individuals may receive a check or prepaid debit card. The IRS has not yet established a schedule to mail checks or cards, but the process should begin after the initial release of Direct Deposit payments.
• The IRS database will be used to determine routing and bank account numbers for qualified individuals. Per the signed legislation, the full credit amount is $600.00 per individual, $1,200.00 per couple, and $600.00 per dependent children under the age of 17. It is available for individuals with AGI at or below $75,000.00 ($112,500.00 for heads of household), and couples with AGI at or below $150,000.00. If you have children, you will receive an additional $600.00 per child.
• For those above this income level, the amount will be reduced by $5.00 for each $100.00 your AGI exceeds the above thresholds.
• The legislation states EIPs are exempt from garnishments and are not subject to reclamation by the Department of the Treasury or the Internal Revenue Service.
• The EIP payments made via ACH will include an identifier (XXTAXEIP2) to distinguish the payments from tax refunds the first EIP.
• EIPs sent as a check will feature a check symbol in the MICR line (40436) and may also require visual inspection to validate that the check is an EIP.