Here are some answers for most questions in regards to the 2020 Stimulus Package
Updated: March 26, 2020; 11:07AM CST
How Much will Taxpayers receive?
$1,200 per single filer (not claimed as a dependent on another taxpayer's return)
$2,400 joint filers
$500 per child who qualifies for the Child Tax Credit. (This is for dependents who are UNDER the age of 17)
Is there an income limitation?
Yes. The limitations start once a taxpayer reaches the following income (based on Adjusted Gross Income on tax return):
$75,000 Single Filers (Single, Married Filing Seperate)
$112,500 Head of House Hold Filers
$150,000 Married Filing Joint Filers
Once the income has reached these amounts, it does not neccessarily mean the taxpayer will not receive a credit, it just means it will be reduced. $50 of the credit will be reduced per $1,000 above the limitations (5%).
Who will qualify?
- US Citizens and Resident Aliens
- Individuals with an Social Security Number
- Children who are under the age of 17, that qualifies for Child Tax Credit
Who will NOT qualify?
- Nonresident Aliens
- Individuals with ITINS rather than SSN
- Dependents listed on your return 17 and up will not qualify you for the additional $500
- Dependents claimed on another taxpayer's return
- Estates or Trusts
What tax year will my income be determined on?
The IRS will base information from 2019 returns as it is the most current. If a 2019 return was not yet filed, they will turn to 2018. If both returns have not yet been filed, you will receive the credit (or additional portion of a credit, if eligible) in 2020 Tax Returns done in 2021.
Not required to file?
For Social Security recipients, if neither a 2019 nor a 2018 income tax were filed, then information from your 2019 Social Security Benefit Statement (1099-SSA) could be used instead. More information on nonfilers will be updated later today.
What if I owe the IRS or Student Loans?
The credit cannot be reduced for certain unpaid debts, including debts owed to a federal agency (excluding child support), past-due state income taxes, federal taxes, or unemployment compensation debts. If you are behind in child support, your check WILL be reduced.
What if I end up not receiving the check?
The bill would require that individuals identified as eligible to receive a payment be sent a notice that provides them with information on the amount of the payment, how it will be delivered (direct deposit/paper check), and a phone number at the Internal Revenue Service (IRS) to call if the payment is not received.
I receive Social Security benefits and do not file a return, will I receive a check and do I need to file a return to get it?
Yes, but you will receive direct assistance via Social Security Admin, not through the IRS. This will look like an additional payment from Social Security. YOU DO NOT NEED TO FILE A RETURN.
I did not file a 2018 or 2019 return and I do not receive Social Security Benefits..will I receive a check?
Most likely, not. If you are planning on filing a 2020 return, you will receive the credit on that return next year.
I no longer have the checking account on my return, how will I receive my payment?
The payment will go to the bank, if the account is closed the payment will be sent back to the IRS and then you will be issued a check by mail.
I no longer live in the address I have on my return and I expect my payment to come as a check, what do I do?
The easiest way is to FORWARD your address with your post office. The second easiest way is to call the IRS to change it by phone. Here are other procedures you can change it..but you must act quickly! -- https://www.irs.gov/faqs/irs-procedures/address-changes
I went through a tax preparer and had my fees withheld through the bank they used, how will I receive my payment?
You should be receiving it by check.
Are these checks taxable?
The only way your check can be taxable is if your 2020 income surpasses the limitation. Some or all of the stimulus check would be taxable on the 2020 tax return done in 2021. This would effect only a small amount of people.
Will there be a second check going out?
Maybe. President Trump is open to the idea but only if the economy remains anemic through the spring. But - don't count on it!
Do I need to "Apply" to receive the stimulus payment?
No, you do not need to do anything except to have filed a tax return if you were required to file in 2018 or 2019.
WHEN WILL WE GET THE CHECKS?!?!?!
This is the top question! Trump wants these checks going out within two weeks however, the IRS (we all know how slow they like to be when it comes to refunds...) say most likely in May. If it is Direct Deposit, you will receive it sooner than those receiving a check. A Check can take much longer due to millions of people receiving them.
Any questions you have you don't see above? Contact us by e-mail. We have been receiving lots of calls every day as well as a phone call every minute. I cannot get to each phone call so please e-mail by filling out the CONTACT US FORM. I PROMISE you, I will reply to your questions within the day. If you need your 2018 or 2019 tax returns ELECTRONICALLY filed, we can help! Let me know you need to file and we will go over the next steps. Please stay safe during these times and take care of yourselves.
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Here are a few Examples that may help answer any confusion or any additional questions you may have:
Example A: A taxpayer who is filing Head of Household with 2 children would be eligible for $2,200. This taxpayer's Adjusted Gross Income is $120,550 in 2019 ($7,050 above the limitation). The credit she would receive is $1,847.50 ($7,050 x 5% = $325.50; $2,200 - $325.50 = $1,847.50)
Example B: A taxpayer has given birth to a child in 2019 and has not yet filed a tax return for 2019. The IRS will be basing the information from 2018 return. The taxpayer will not receive the $500 credit now. When the taxpayer files a 2020 return in 2021, the additional $500 will be listed as a credit on that return.
Example C: A taxpayer has not filed for 2018 nor 2019 returns. They will not receive the credit right now. When they file for 2020 in 2021, they will receive the credit on their 2020 return, assuming they meet the requirements.
We will be updating more information here when congress finalizes all other details! Please check back soon! Need to electronically file 2018 or 2019 returns quickly? Contact us! We complete returns by the hour.