03/27/2020
Coronavirus stimulus checks on the way. Read on to learn if you qualify, how much you will receive and when. Other general questions answered.
Congressional leaders and President Donald Trump announced a bipartisan deal Wednesday, March 26th, on a massive $2 trillion emergency economic package that includes direct cash payments to people across the country to help them through the crisis. The Senate passed the bill 96 to 0, and the House is expected to follow suit on Friday.
1. How much will I get?
It depends on how much you make. The government will base your stimulus on your 2019 return, line 8B or line 7 on your Form 1040 tax return of 2018 if you haven't filed your 2019 taxes yet.
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 as "head of household" and earned $112,500 or less gets $1,200. For every child in the household, you will receive an additional $500.
If you made more than $75,000, your payment will be reduced by $5 for every $100 of income that exceeds the limits. So, if you made $80,000 in 2019, you would receive $950. The payment decreases to zero for an individual making $99,000 or more or a couple making $198,000 or more. If you're a family of four, you’ll be eligible for a maximum of $3,400.
2. When will you receive the money?
Treasury Secretary Steven Mnuchin said Wednesday the checks will be sent out "within three weeks" to people for whom the IRS has information. You don't need to sign up or fill out a form to receive a payment if you've been working and paying taxes since 2018.
The Treasury Department will also run a "public awareness campaign" with information about the program, including for people who didn’t file a tax return for 2018 or 2019. This is will be a one-time payout, not multiple checks.
3. How will I receive this money?
There's no signup. The payments will be automatic for people who have filed a tax return or gotten Social Security benefits recently.
If you've gotten a tax refund in the last two years by direct deposit, that's where the money will be sent. If not, the IRS can mail a check to your "last known address," and it has 15 days to notify you of the method and amount of the payment. They'll send a phone number and appropriate point of contact so you can tell them if you didn't receive it.
If you’ve moved recently, it may be a good idea to notify the IRS as soon as possible. The IRS also suggests that if you haven't yet filed a tax return for 2018 or 2019, do it as soon as you can, so that the government has your up-to-date information on file.
OTHER QUESTIONS
If you are on Social Security or don’t make enough to file a tax return, yes you will be eligible if you received a Form SSA-1099 for the year 2019. That's a form that the Social Security Administration sends each year to people who receive Social Security benefits, including retirement and disability.
If you are a disabled vet but don't pay taxes. Yes, although some of the details still need to be worked out. The IRS is expected to set up a system so that disabled veterans don't fall through the cracks.
If you are a college student. If your parents claim you as a dependent on their taxes, you're ineligible. But if you've been working and filing taxes independently in recent years, you may qualify.
