Friday, the House voted on the $2 Trillion stimulus bill and Trump signed it into law.
“This will deliver urgently needed relief to our nation’s families, workers and businesses. And that’s what this is all about,” said Trump.*
The bill will put cash into the pockets of 125 Million Americans. Businesses and health care facilities also benefit from the bill. However, implementing it will be the challenge.
Let’s talk about how this affects you – if you’ll get a relief payment, and how…
About your $1,200 stimulus check
The U.S. government will either deposit the funds into your account, or send you a check. $1,200 will go to adults with annual (adjusted gross) incomes up to $75,000, and an additional $500 per child.
Americans who earned more than $75,000 last year will receive a smaller amount, depending on their qualifications.
The goal is to get payment to you in early April, but it could be later in the month.
Technically, this is a tax credit. As stated above, those with adjusted gross incomes (AGI) up to $75,000 will receive $1,200. Those with up to $99,000 AGI will receive reduced payments (dropping $5 for every $100 in income above $75k).
This means that married couples with AGI of $150,000 could receive $2,400. Again, payments lower for those earning up to $198,000. And $500 goes to married couples for each child under 17.
If you filed “head of household”, you’d be eligible for the $1,200 if you have an AGI up to $112,500/year. Payments go down for those earning up to $136,500 per year. The $500 child payment also goes to head of households.
If you earned too much to qualify in 2018 and 2019, but your income dropped in 2020, when you file for your taxes in 2021, you will qualify for the tax credit.
And if you qualified for those previous years, but you don’t in 2020, you will receive the payment, but will not have to pay it back.
People Who are on Social Security
Yes, those on Social Security are eligible as long as they fall within the income parameters above.
Social Security Americans who are low-income do not need to file a tax return. If you receive an SSA-1099 form, you should receive the relief payment.
“There aren’t provisions explaining a list of people eligible — it’s a broad definition, meant to be as all-encompassing as possible,” Zona said.*
How you’ll get paid
The IRS will use your direct deposit information from your 2019 tax return to transfer the payment to your account. If they don’t have your account information, they will mail you a check.
If you haven’t filed yet, the IRS will use your 2018 tax return, using that information to determine your eligibility.
When to expect payment
The goal is the week of April 6. Although many feel this could be too aggressive a goal. It could happen later in April.
And the next payment?
There’s talk of another payment this summer, but Trump said it will only happen if the economy continues the struggle, and another lift is necessary.
If you owe taxes, don’t worry, it will not come out of your check.
If you have more questions, see Coronavirus Tax Relief
And finally, you will not be expected to pay taxes on this stimulus check.
Other parts of the bill:
Unemployment benefits, retirement distribution, paid family and sick leave, student loan relief, mortgage relief. See how these affect you.
- SBA Forgivable loans
- SBA Emergency Grant
- Withdraw Retirement Penalty-FREE
- SBA Disaster Loans
- Defer Paroll Taxes
- Recovery rebates
- Cash for NOLs in 2018, 19, 20
- Employee Retention Credit
- Sick Employee Payroll Tax Credit
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