Be on the lookout for your EIP card

The Internal Revenue Service (IRS) sent out nearly 4 million Economic Impact Payment (EIP) prepaid debit cards on May 27. The EIP card contains the money you are receiving as a result of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The cards are sponsored by the Treasury Department’s Bureau of the Fiscal Service and part of the U.S. Debit Card Program. You can find more information on the EIP cards on the website https://www.eipcard.com/. Visit the site to learn how to activate the cards and start using them.

The debit cards will arrive in a plain envelope from ‘Money Network Cardholder Services.’ Cards will be preloaded with your payment and feature the same protections against loss, theft, and fraud as a traditional bank account would. Here is some additional information on eligibility and other things to monitor.

 

Eligibility

U.S. citizens and U.S. resident aliens will receive the Economic Impact Payment of $1,200 for individual or head of household filers. People that are married filing-jointly will receive $2,400 if they are not a dependent of another taxpayer and have a work-eligible Social Security number with adjusted gross income up to:

• $75,000 for individuals if their filing status was single or married filing separately
• $112,500 for the head of household filers and
• $150,000 for married couples filing joint returns

Those who don’t usually file a tax return and receive Social Security retirement, survivor, or disability benefits (SSDI), Railroad Retirement benefits, Supplemental Security Income (SSI), and V.A. Compensation and Pension (C&P) also receive automatic payments of $1,200.

 

Notification from the IRS about the payment

For security reasons, the IRS plans to mail a letter about the economic impact payment within 15 days after the payment. The letter will provide information on how to report any failure to receive the payment. If you are unsure that the letter is legitimate, the IRS urges you to visit IRS.gov first to protect against scam artists.

 

How to avoid scams

The IRS urges you to be on the lookout for scam artists trying to use the economic impact payments as cover for schemes to steal personal information and money. Remember, the IRS will not call, text you, email you, or contact you on social media asking for personal or bank account information – even related to the economic impact payments. Also, watch out for emails with attachments or links claiming to have special information about economic impact payments or refunds.

 

How to get payment if you receive Social Security, SSI, Railroad Retirement, or Department of Veteran Affairs (V.A.) benefits

You are not required to file a tax return. You will automatically receive a $1,200 Payment if you received Social Security retirement, SSDI, survivors’ benefits, SSI, Railroad Retirement benefits, or V.A. Compensation and Pension (C&P) benefits in 2019. You do not need to contact the IRS, Social Security Administration (SSA), the Railroad Retirement Board (RRB), or Veterans Affairs. The IRS will use the information from your 2019 benefits to generate a Payment to you if you did not file tax returns in 2018 or 2019. You will receive your payment as a direct deposit or by mail, just as you would normally receive your federal benefits.

 

You can find more information on the IRS economic impact payment information center:

https://www.irs.gov/coronavirus/economic-impact-payment-information-center

 

This article is intended for general informational and educational purposes only, and should not be construed as financial or tax advice. For more information about whether a reverse mortgage may be right for you, you should consult an independent financial advisor. For tax advice, please consult a tax professional.