The landmark $2 trillion relief package is the first form of direct assistance passed by the government to assist Americans with the financial difficulties brought on by the spread of coronavirus.
If your single Adjusted Gross Income (AGI) is under $99,000, or your married joint AGI is below $198,000, you will receive some sort of stimulus check. Dependents over the age of 16 do not qualify for stimulus checks.
How Much Will I Get?
This depends on how much you made and whether you have dependents under the age of 17 to claim. The base amount for the stimulus check is $1,200 for individuals or $2,400 for those who filed jointly, for incomes of $75,000 or $150,000 respectively.
Also, those filing as head of household have a threshold of $136,500 and can receive a check of up to $1,200 before considering dependents.
For every $100 made above these thresholds, the amount of the stimulus check will be reduced by $5.
In addition, for every child under 17 claimed as a dependent, you will receive an additional $500.
So, in the case of a couple filing jointly, making under $150,000, with two dependents under 17, the amount of the stimulus check would be $3,400.
When will I get it?
While there is no specific date on which you will receive your check, the U.S. Treasury secretary, Steven Mnuchin, has said that most people should expect the payment by April 17th.
However, according to the IRS website, payments will start in the three weeks following March 30.
How will it be sent?
The IRS will use the information from the applicable tax return, whether it is via direct deposit or mailed check. For those who believe that the IRS does not have correct information about where to send a check, the IRS is opening a web portal for you to submit correct direct deposit information.
Which year’s income amount will be used to determine eligibility?
Your 2019 income will be used to determine eligibility. If you have not yet submitted your taxes for 2019, the income on your 2018 return will be used.
Will I have to pay income tax on my check?
No. The payment is technically a tax credit, applicable towards your 2020 taxes. Tax credits are better than deductions because even if you don't owe anything, a tax credit will be refunded to you.
Is there a minimum income to be eligible for a check?
No, there is only a maximum income.
What if my 2018 income makes me eligible, but my 2019 income makes me ineligible?
If you have not yet submitted your 2019 tax return, you are all set and should hold off on submitting your 2019 return. If you have already submitted your 2019 tax return, your eligibility will be based on that and you would be ineligible.
Remember, the check is a credit for your 2020 taxes, so you could receive the money in the form of a tax credit, if your income qualifies in 2020.
Is this a one-time payment or just the first?
At this point in time, this is just a one-time payment.
If I claim my college-aged child as a dependent, can I receive $500 for them?
No, individuals aged 17 or older, claimed as dependents are excluded from qualifying for stimulus checks.