By now you have certainly heard that Congress and the President approved a huge economic stimulus package for taxpayers impacted by Covid-19 virus.
What is the payment?
The stimulus payment is actually an advanced tax credit for your 2020 taxes.
- Single taxpayers with less than $75,000 Adjusted Gross Income
- Married filing jointly taxpayers with less than $150,000 Adjusted Gross Income
- Head of Household taxpayers with less than $112,500 Adjusted Gross Income
How much is the payment?
- $1,200 for each adult
- $500 for each child 16 or under
Are payments reduced?
- Single taxpayers with AGI between $75,000 to $99,000 receive reduced amounts
- Payments are phased out with AGI over $99,000
- Married taxpayers with AGI between $150,000 and $198,000 receive reduced amounts
- Payments are phased out for married couples with AGI over $198,000
What if my income was above the limit in 2018 or 2019, but falls below for 2020?
You will still get the benefit of the credit when you file your 2020 tax return. You just will not get a check for advanced payment.
Will I have to pay back the stimulus payment or will it reduce my tax refund?
Not if your 2020 income is below the thresholds above.
What if I have a balance due for prior year taxes or student loans?
Stimulus payments will not be withheld to offset existing debt.
What if I am an adult dependent on someone else’s tax return in 2019?
Dependents do not get a payment.
What if I was a dependent in 2019, but not in 2020?
You will not receive a payment, but you will get the benefit of the credit when you file your 2020 tax return.
What if I don’t have a Social Security Number?
You don’t qualify if you file using an ITIN or EIN.
Do I have to file anything or call anyone to get the payment?
As long as you filed your 2018 or 2019 tax return there is nothing else you need to do.
What if I received a call from the IRS asking for my social security number and bank account information to send me my payment?
That is a scam, do NOT give them your information. The IRS will NOT call or email you asking for this information. No state agency is going to call or email asking for this information either.
When will I receive my payment?
The IRS estimates that payments will start arriving in 3-4 weeks.