Mark Krueger

DALTON, Ga. — Americans could start receiving economic impact payments from the federal government around the middle of this month, according to Dalton accountant Mark Krueger.

Krueger spoke with Whitfield County Board of Commissioners Chairman Lynn Laughter Tuesday night in a discussion that was live-streamed.

The Coronavirus Aid, Relief and Economic Security (CARES) Act, signed into law by President Donald Trump in March, provides $1,200 for each taxpayer making up to $75,000. The amount of the checks phases out after that, ending completely for those earning more than $99,000. Married couples earning up to $150,000 will receive $2,400 plus $500 for each dependent below age 17. Those payments also phase out at higher incomes, ending at $198,000. Those filing single head of household will receive $1,200 if their income is below $112,500, with the payments phasing out up to $146,500.

Krueger said the payments “are actually considered a pre-payment of a credit that will be on the 2020 tax form. This credit is not considered taxable income for federal income tax purposes.”

“A House Ways and Means Committee analysis states that the Internal Revenue Service (IRS) will begin making about 60 million direct deposit payments in mid-April to the people who have bank account information on file with the agency,” Krueger said in an interview before the live-stream. “These payments will take about three weeks to process. The IRS then will begin issuing paper checks in the mail in early May. The IRS will send approximately 100 million checks at a rate of 5 million per week, which could take up to 20 weeks, according to the committee’s document, meaning the final round of payments may not go out until September. The checks will be issued in reverse adjusted gross income order — starting with people with the lowest income first.”

The federal government is supposed to set up a hotline to call if you don’t receive your payment based on that timeline above.

“You may have moved, for example. If you have moved since you last filed a return, file Form 8822 as soon as possible,” Krueger said.

Krueger said Social Security recipients will get a check even if they don’t file income tax.

“If you are not a Social Security beneficiary and have not filed tax returns for 2018 or 2019, consider filing a 2019 return to get it, even if you aren’t otherwise required to file a return,” he said. 

Krueger said the deadline to file both state and federal taxes has been extended to July 15. Taxpayers will not have to file an extension if they file before that date.

But Krueger said the deadline for certain 990 tax returns, filed by nonprofits, remains May 15.

For those who pay estimated taxes, such as the self-employed, the deadline for their first 2020 payment has been extended from April 15 to July 15. But the deadline for their second payment remains unchanged at June 15.

“Your second payment will actually be due before your first payment,” Krueger said.

Krueger added that that makes “no sense.”

A caller asked about small business loan programs created by the CARES Act to help firms affected by the loss of business or by mandatory shutdowns as a result of the new coronavirus (COVID-19) pandemic. Krueger said there are actually two programs, the economic injury disaster loan and the payroll protection loan.

He said businesses can apply for an economic injury disaster loan directly through the federal Small Business Administration website. He said those loans could be forgiven if they are used on coronavirus expenses.

The payroll protection loan is aimed at helping businesses continue to meet their payrolls. Local banks are handling those applications.