The President of the United States, Donald Trump has signed into law a total of $2 trillion economic stimulus package which includes payment of about $1,200 to the US taxpayers in it’s attempt to help relief the financial effects of the Coronavirus outbreak.
Apart from the stimulus payment, the government is also providing financial aid to businesses and industries that were badly hit by the effects of the outbreak as well as expanded unemployment and student loan assistance.
As much as nine in 10 households may receive a recovery rebate under the economic stimulus. But this stimulus will not be for everyone while some will only receive part of the payment.
Here’s what we know about the individual and household coronavirus checks that are part of the federal package — including finding out if you’ll be eligible, how much you can expect to receive and how to receive your payments. Meanwhile the story will be updated based upon development of new stories.
Previous year’s taxes determines what you’ll get
How much you’ll get from the stimulus package depends on your AGI or Adjusted Gross Income from the previous year (2019) federal tax filing. In case you haven’t filed this year, your 2018 filings can be used to judge that.
If you’ve filed your 2019 federal tax return, you can find that figure on line 8b of the 2019 1040 federal tax form. It’s line 7 on the 2018 1040 tax form.
So are you eligible for the Stimulus check?
So according to official statements, the amount you’ll get will be totally dependent on your total income in 2019 or 2018 and below are what you should know about being qualified.
- If you’re a single US resident and have an adjusted gross income less than $99,000.
- If you file as the head of a household and earn under $146,500.
- If you file jointly without children and earn less than $198,000.
Read on for how your payment is calculated and how much you can expect. You can also look at this calculator.
As a single Taxpayer, how much will you get?
If you’re a single US resident, you must have a social security number and an AGI under the sum of $75,000 in order for you to receive the full $1,200.
Bu then the amount decreases while your AGI goes up which means if your Adjusted Gross Income peaks about $99,000, you’ll not be able to get the stimulus at all.
As the Heads of household
But if you’ve filed as the head of a household, you will get your $1,200 payment in full so far your AGI is $112,500 or below that while if your AGI peaks $145,500, the amount of Stimulus check you get starts decreasing.
Couples can file jointly if
For the married couples who have jointly filed without kids and have an AGI which is below $150,000, they will both get the sum of $2,400 while the stimulus check amount starts to decrease to zero at $198,000.
But if they have kids under the age of 16 and younger in the family, the parents will get a payment of $500. But as for older children and other dependents, they may not be eligible for the stimulus check.
If you haven’t filed federal taxes for 2018, do that right now
According to the IRS, those who haven’t filed for the 2018 federal taxes should do so as it can affect their stimulus check and recommends that anyone who hasn’t filed a 2018 tax return to file now.
If you’re retired and didn’t file a tax return for 2018 or 2019, you still may qualify
The IRS will use your Social Security benefit statement to determine if you can receive a payment.
The check will soon start going around
At the White House on Sunday, Treasury Secretary Steven Mnuchin said he expects people will receive their checks within three weeks if they have direct deposit set up with the IRS. If you’ve not set up direct deposit with the IRS, the government will mail your check.
The Secretary Mnuchin also made it known that those who do not have a direct deposit but would rather an e-payment, he made it assurance the government will create an online system that will let you set up e-Payments so as to get the money deposited directly into a bank account without any physical check.
Do you need to sign up, apply or request your check?
The federal government will automatically send your check to you electronically or in the mail, if you qualify, according to the IRS.
What if you didn’t receive the check?
If you meet all criteria but still didn’t receive your payment for whatever reason, there should at least be a mail from the government notifying you about where and when to expect your check but if you also didn’t receive that notice, you can contact the IRS using information in the notice.
In addition to the economic stimulus package, the US government delayed the income tax filing deadline to July 15. If you need more help, here’s how to get financial relief.
So hurry now and get your own federal tax filing so as to get qualified for the stimulus relieve as the Coronavirus pandemic has lead to the shutdown of numerous business and a global economic panic.