Cash up to $1,200 for individuals to hit direct deposit, under legislation

WASHINGTON — The checks are coming. One-time payments of up to $1,200 should start going out in the next three weeks to most Americans who file individual tax returns, Treasury Secretary Steven Mnuchin said. Those who file joint returns will get up to $2,400.

The payments are part of a $2.2 trillion recovery package negotiated by the White House and congressional leaders. The Senate passed the package Wednesday, and the House is expected to approve it Friday.

The payments will be sent via direct deposit to Americans who already have provided the Internal Revenue Service with their bank account information. For those who haven’t, the checks will be mailed.

So how much money should you expect? If you’ve already filed your 2019 taxes, the IRS will use those returns to determine your rebate. If not, your 2018 returns will be used to calculate your check.

Individuals with an adjusted gross income of $75,000 or less will be eligible for up to $1,200 ($2,400 for joint tax returns) and $500 for each qualifying child. Those with little or no tax liability will get at least $600 ($1,200 for joint returns.)

The payments will start to phase out for Americans who earn more than $75,000, or $150,000 for a joint return. The amount you receive will be decreased by 5% of the amount your income exceeds $75,000. For example, a single person with an $85,000 salary would get $700 after subtracting 5% of $10,000, or $500.

The payments will phase out completely for single filers with incomes exceeding $99,000 and $198,000 for joint filers with no children.

You don’t have to apply to receive the money. If you’ve filed income taxes in the past two years, you will automatically get a check.

Another bonus? The checks aren’t taxable.