March 22, 2020
Now that Congress has approved the $2.2 trillion stimulus package, you may be wondering what your cut will be. We’ve tried to simplify it for you.
The IRS will be distributing money to an estimated 125 million Americans. The money will come in the form of a check — or direct deposit, if you’ve signed up for it with the IRS on your federal tax returns.
First things first. Consumers eager to receive their stimulus checks from the government’s historic coronavirus aid package need to make sure they are up to date on their taxes.
Your income level will be determined based on your 2019 tax returns If your 2019 taxes have yet to be filed, the IRS would use information from your 2018 forms.
So if you haven’t filed taxes yet for one of those years, now is a good time.
This step is especially important for low-income Americans who don’t typically file taxes. In that case, they would still need to file a form.
People receiving nontaxable income would still get checks and those receiving Social Security benefits.
Q: How much will you get?
A: – If you earn no more than $75,000 a year in gross adjusted income, you qualify for the full $1,200;
– Married couples can get $2,400 provided their adjusted gross income doesn’t exceed $150,000 a year;
– You can still get a (reduced) check if you don’t make more than $99,000 – the total is reduced by $5 for every $100 over $75,000;
– Married couples who make up to $198,000 will also get reduced checks;
– People who file as a “head of household” (single parents with children) are eligible for the full $1,200 check if they earn up to $112,500 a year, with the scale sliding up to $136,500 a year;
– Adults will also receive $500 per child under age 17;
– Those receiving nontaxable income or Social Security get payments, too. They must complete a form for those making under $69,000 and or for those making above $69,000.
Q: Who doesn’t get a cut?
A: The wealthy, “nonresident aliens” (foreigners without green cards) and dependents who can be claimed on someone else’s tax return.
Q: Any catches?
A: Because the government is using tax returns from 2019 and 2018 to figure out whose projected 2020 salary qualifies them for a payout, it’s possible that a small number of recipients may have to repay some of the amount sometime before April 15, 2021.
A: Treasury Secretary Steven Mnuchin said it should take no more three weeks to arrive once its sent sometime in April, but some experts insist it will be months, not weeks.
Q: Will there be another payout?
A: The possibility of another rounds exists, President Trump said, but only if it’s needed.
Once all of the logistics have been figured out, you can learn more about your payout.
In the meantime, the Washington Post produced a handy stimulus check calculator for you. Click Here.
(Sources: The Washington Post, NBC News and The Internal Revenue Service)