As the Coronavirus continues to wreak havoc on the U.S. Economy, there is help around the corner for struggling Americans. With the passing of the $2 trillion economic stimulus bill (CARES Act), direct payments will be sent out to taxpayers.
Here’s what you need to know:
- If you made less than $75,000 in 2019, you will be eligible for the full payment of $1,200. Couples who filed jointly and made less than $150,000 will get $2,400. An individual who filed “head of household” and earned $112,500 or less gets $1,200.
- If you qualify for a payment, you will receive an additional $500 for each child in your home under the age of 17.
- If you made more than the income limits, your payment will be reduced by $5 for every $100 of income that exceeds the limit.
- There is no sign-up required, the IRS will automatically mail out the checks to the “last known address” or by direct deposit if you have that set up.
- The IRS notes that the distribution of the recovery rebate payments will begin in the next three weeks.
- The government is using your “adjusted gross income” from your 2019 tax return. If you have not filed your 2019 tax returns, the government be using your 2018 tax return.
- College students who have been working and filing taxes independently in recent years may qualify to receive the credit. If they are claimed by their parents as dependents, they will not.
- If you made too much to qualify in your last tax filing season but qualify now, you may receive the funds albeit delayed. Americans can apply for it when you file your 2020 tax return if your income drops below the thresholds.
- Individuals on Social Security who didn’t file tax returns in 2018 or 2019 are eligible to receive funds if they received a Form SSA-1099 for the year 2019.
The Treasury Department will be running a “public awareness campaign” with information about this program, including for people who didn’t file a tax return for 2018 or 2019.
The IRS has created a new section on their website specifically dedicated to the economic impact payments. For more detailed information, you can visit their site: https://www.irs.gov/coronavirus
Colleen Wysong is a Principal and the Director of Operations and oversees business procedures, technology, and Aspyre’s compliance standards. She develops, maintains and communicates the firm’s information processes and data management systems. She works to ensure the firm is meeting quality client service and performance targets as well as facilitating the human resource policies and procedures. For help with your specific situation contact Colleen Wysong at cwysong@aspyrewealth.com, (913) 345-1881 or visit our website at aspyrewealth.com. We help successful people Master What’s Next® – whatever phase of life they are in.