In an unprecedented move the House has just passed a 2 trillion dollar coronavirus economic stimulous package which includes checks to many of us!
Here are the answers to the most commonly asked questions regarding the stimulous checks:
HOW MUCH WILL I GET?
Most of us will receive $1,200 per adult per household and $500 per child as long as you didn’t make more thank $75,000 on your last tax return for 2018 or 2019 if filing as a single person or $150,000 if married filing jointly.
If you made less than $75,000 per year in 2018 or 2019 you will be eligible for $1,200 per adult, couples filing jointly who made less than $150,000 combined will receive $2,400. If you filed head of household and made less than $112,000 you will receive $1,200. You will also receive an additional $500 per child listed on your most recent tax return.
If you made more than $75,000, your payment will be reduced by $5 for every $100 of additional income. Basically, if you made $80,000 in 2019, you will receive a payment of $950.00 . At the $99,000 mark (or $199,000 filing jointly) your payment will decrease to zero. To calculate how much income the IRS is showing for you, check out your most recent tax return and look for your adjusted gross income (Line 7 on your Form 1040 tax return in 2018, or line 8B on a 2019 return). If you haven’t filed your 2019 taxes yet, it will be based off your 2018 return.
DO I NEED TO SIGN UP TO RECEIVE A CHECK?
No. there are no sign up requirements at all to receive your money. The payments will be automatic for those who have filed recent tax returns (2018 or 2019) or received Social Security Benefits. The IRS has set up a special stimulous payment information page here that will include information for the public to check out once things start rolling.
If you did NOT file tax return you can still enter your banking information on the IRS PORTAL HERE to get your funds.
WHEN WILL I RECEIVE MY MONEY?
Checks are expected to be sent out (or direct deposited) within 3 weeks to people with whom the IRS already has information on from prior tax returns for 2018 or 2019. The Treasury Department will be releasing a public awareness campaign for those that did not file a 2018 or 2019 with further information and instructions on how to claim your money.
HOW WILL I RECEIVE MY MONEY?
If you filed your taxes in 2018 or 2019 and received your refund via direct deposit you will receive your coronavirus stimulous check via direct deposit to the same account. If you did not receive a direct deposit refund you will receive a check in the mail to the address listed on your most recent tax return.
If you do not live at the same address that is on your tax return it is advised that you contact the IRS immediately and notify them of your new mailing address. You can do so by visiting the IRS website here and follow the directions shown.
If I didn’t file my 2019 tax return yet will I still get a check?
Yes, if you did not file your 2019 taxes yet, your 2018 tax return will be used. If you have not filed either, it is strongly suggested that you get those returns filed as soon as possible. If you were not required to file a tax return but received income that was reported to the IRS you will still receive a check.
If I am unemployed, receive social security or didn’t make enough money to file a return will I still receive a check?
YES! Even if you didn’t file a tax return in 2018 or 2019 or owe taxes you will still be eligible if you received any income in those years or if you received an SSA-1099 form from the Social Security Administration.
If I am a student or I am claimed on someone else’s tax return will I receive a check?
If you are a full time student and your parents claim you as a dependent you are ineligible and will not receive a check. However, if you are working and file your own individual taxes you will receive a check.
Will I have to pay taxes on the money that I receive?
No, the money is a credit and you will not have to pay taxes on the money you receive.
Do you have to be an American Citizen to receive a check?
No you do not have to be an American Citizen AS LONG AS you are living and working in the United States and have a current Social Security Number. This will include those here on a green card and should include those on work visas. It will not include visitors or those who are here illegally regardless of your work situation.
If I owe back taxes will I still get a check?
Yes, the stimulous checks will not be affected if you owe back taxes to state or federal governments
If I owe past due child support will I still receive a check?
You will not receive a check if the state that you owe the child support has notified the Treasury Department to offset any payments due to you. In other words, if you owe past due child support your payment will either be reduced or intercepted completely depending on your situation. You can find more information on this topic in this article written by NBC News by clicking here.
If I owe past due federal student loans will I still receive a check?
Yes, past due student loans or other federal obligations will not affect you receiving a check.
I hope that this information helps you better understand how the CoronaVirus Economic Stimulous checks will work. This is an effort to keep the economy going during these hard times. I pray that you and your family are staying health and safe and practicing self distancing as much as possible.