The stimulus payment is part of the Coronavirus Aid, Relief, and Economic Security Ave, or CARES Act, signed into law on 03/27/2020. Basic information on the payments are:
- $1200/individual; $500 per dependent (dependents aged 17-23 may not qualify for the $500).
- The checks will be direct deposited into your bank account if listed on a tax return; otherwise they will be mailed to the address on your most recent tax return.
- The checks will be reduced if your adjusted gross income is more than $75,000 and filed Single, $112,500 and filed Head of Household, and $150,000 and filed Married.
- No stimulus checks for those with adjusted gross income more than $99,000, $136,500, and $198,000 in their respective filing status category. (These amounts are adjusted for dependents)
- Scammers are already scheming up ways to defraud the public of these checks. Please be aware.
- Stimulus Check Calculator
- It is our understanding that EVERYONE with a Social Security Number will get a payment unless they have too much adjusted gross income.
Q. What year will be used to determine income?
2019. Unless you haven’t filed yet. Then 2018 will be used. Because this is a 2020 advanced credit, you may qualify when you file your 2020 income tax return.
Q. I receive social security benefits and am too low to file a tax return. Will I get a check?
Yes, according to the law, if you are receiving social security benefits, but didn’t file for 2018 or 2019 you will receive a payment. However, you may need to file a simple return with the IRS. They are still developing a portal to do this on their website. Please check here for updates: https://www.irs.gov/newsroom/economic-impact-payments-what-you-need-to-know
Q. I do not receive social security benefits and have procrastinated on filing a tax return for 2018 and 2019. Will I get a check?
No. Our advice is to file a 2018 or 2019 income tax return immediately. Contact us at info@prospecttax.com for help filing.
Q. Do I need to apply for the check?
No, they will be automatically sent out.
Q. My 2018 and 2019 income made me ineligible, but I anticipate much less income in 2020. Do I get a payment?
You may benefit once you file your 2020 taxes. The payment is technically an advance on a tax credit that is available for the entire year. So it will depend on how much you earn.
Q. I owe back taxes, will the payment automatically be used to pay those taxes?
No. You will get the payment.
Q. What about being behind in student loans?
You will still get the payment.
Q. Will I have to repay the stimulus payment?
The payment is an advance payment of a 2020 tax credit. It won’t have to be repaid and it won’t reduce your refund on the 2020 return. If you don’t get the payment as an advanced credit (maybe your income was too high in 2018 or 2019), then you may qualify for it when you file your 2020 tax return (if your income goes down).
Q. How do I know if the IRS has my direct deposit information?
They are developing a portal to ensure they have your information. Please check here for updates: https://www.irs.gov/newsroom/economic-impact-payments-what-you-need-to-know
