$1,200 Stimulus Check – Do You Qualify?

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.

Who Qualifies

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.

Also included:

  • 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

Also check out:

*cited: Washington Post and NBC

12 thoughts on “$1,200 Stimulus Check – Do You Qualify?

    1. Hi Theresa, yes, you should receive the stimulus check as long as you fit within the income parameters mentioned above. ($1,200 for income up to $75,000, etc). Thanks!

  1. There is no mention of whether or not SSI recipients will get a payment. I receive SSI and have never gotten an SSA-1099 but don’t file a tax return. Will I be able to get a check?

    1. Hi Tina, great question. As long as you fit within the income parameters above, you should receive a stimulus check. The bill is
      designed to be all encompassing to include as many people as possible. I believe the only people ineligible for the check are the wealthy. Hope this helps!

    1. Hi Brenda, great question. IF you are low income, you do not need to file to receive your stimulus check. Basically, the bill was designed to be all-encompassing. So, whether you file or not, as long as you’re within the income parameters, you should receive your check. The IRS will send it to the address or bank account they have for you.

    1. Hi Billie Jo, if you haven’t filed at least 2018 taxes, it could affect you receiving your payment. However, if you’re receiving SSI or SSDI, you should receive your stimulus check.

      Here is what the IRS says to do if you haven’t filed:

      “Haven’t filed a tax return for a previous year? Take steps now.

      The IRS encourages anyone with a tax filing obligation who hasn’t filed a tax return for 2018 or a previous year to act now. – Pending legislation includes certain potential credits and rebates for those who have filed a return for 2018 and/or 2019. Those without 2018 tax filings on record could potentially affect mailings of stimulus checks. And more than 1 million people who haven’t filed tax returns for Tax Year 2016 and are owed a refund still face an April 15, 2020, deadline to file their return. This deadline hasn’t been extended. Current law requires the 2016 return to be filed by April 15, 2020.

      Many non-filers should consider contacting a tax professional to consider various available options since the time to receive such refunds is limited by statute. Once delinquent returns have been filed, most taxpayers have the opportunity to resolve any outstanding liabilities by entering into an Installment Agreement or an Offer in Compromise with the IRS to obtain a “Fresh Start.” See IRS.gov for further information.”

      In short, if you have a tax obligation, file immediately. If you’re worried about owning money to the IRS, you can call them and make other arrangements. Otherwise, it’s best to file your taxes now.

      Find more information on the IRS site: https://www.irs.gov/newsroom/irs-operations-during-covid-19-mission-critical-functions-continue

      Hope this helps.

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