One part of the $2 trillion Coronavirus Aid, Relief and Economic Security (CARES) Act, includes cash payments intended to lessen the economic hardship for many taxpayers affected by the pandemic. The first thing to realize is that eligibility will be determined by your 2018 tax return, unless you’ve filed a 2019 tax return before checks are cut. Anyone who hasn’t filed a 2018 (or isn’t typically required to file a) tax return is urged to do so immediately. Checks are expected to begin arriving in the mail within three weeks, or you can go to the irs.gov website to register for direct deposit (NOW!).
The total amount of your stimulus check will be based upon your adjusted gross income (AGI), from your 2019 federal income tax filing or, 2018 if not received before issuance. Your AGI can be found on line 8b of the 2019 1040 federal tax form or on line 7 of the 2018 1040 federal tax form. Qualified individuals will receive a one-time check for $1,200 based on the following:
- Single U.S. residents with an AGI of $75,000 or less (then the check amount will degrade on a sliding scale, up to a maximum AGI of $98,999 after which the taxpayer becomes disqualified from receiving a stimulus check).
- Head of Household with an AGI of $112,000 or less (then the check amount will degrade on a sliding scale, up to a maximum AGI of $146,499 after which the taxpayer becomes disqualified from receiving a stimulus check).
- Married filing jointly with an AGI of $150,000 or less (then the check amount will degrade on a sliding scale, up to a maximum of $197,999 after which the taxpayers become disqualified from receiving a stimulus check). ***For each child aged 16 or younger in the family, parents will get an additional payment of $500*** Older children and other dependents may not be eligible for a payment.
If you “qualify” for a stimulus check, there is nothing needed to be done in order to receive a stimulus check. As mentioned earlier, those people normally not required to file a tax return (some veterans, senior citizens, low-income taxpayers, and people with disabilities) MUST FILE A SIMPLE TAX RETURN TO RECEIVE A STIMULUS CHECK!!! The IRS coronavirus web page will soon post instructions for those needing to file a simple tax return. On April 1, the IRS and Treasury Department jointly announced that social security recipients will automatically receive stimulus checks, regardless of having filed a tax return for 2018 or 2019.