Stimulus Checks: What You Need to Know

Almost a week ago, the IRS and Treasury Department announced that individuals and families will receive a stimulus check to provide emergency assistance in response to COVID-19.  As of now, these payments will be available to tax filers through the rest of this year.

As of today, most people will automatically receive these payments and no additional action is necessary.  Some will need to submit a simple tax return in order to receive their payments. 

Did you file a tax return for 2018 or 2019?  Is your banking information the same as what you listed on your tax returns?  All you have to do is wait for the money to show up if you answered yes to both those questions. 

Did you switch bank accounts since you filed your 2018 or 2019 tax return?  The IRS is working on a portal for individuals like you to provide new banking information, so you do not have to wait on checks. 

Do you typically not file a tax return and receive Social Security or railroad retirement benefits?  The IRS will use information on your 1099-SSA or 1099-RRB to issue your stimulus check; however, amounts for dependents will not be included.

Not retired and not required to file a tax return?  Filing a simple tax return for 2019 will ensure you receive a payment.  Be sure to include your banking information on your simple tax return. 

In order to determine if you will receive a stimulus payment, you will need to look at your adjusted gross income on your federal tax return.  This can be found on line 8b of your 2019 Form 1040 or line 7 of your 2018 Form 1040.

Individuals with adjusted gross income up to $75,000 will receive $1,200.  Your payment is reduced by $5 for every $100 over $75,000 up to $99,000.  Single filers with income over $99,000 with no children get zero dollars.

Married couples filing joint returns with adjusted gross income up to $150,000 will receive $2,400.  Your payment is reduced by $5 for every $100 over $150,000 up to $198,000.  Joint filers with income over $198,000 with no children get zero dollars.

Parents will receive $500 for each qualifying child.

There are some great stimulus check calculator’s out there or ask you tax pro to help figure out your payment.

New updates are being released daily and it is easy to get lost in the overwhelming amount of information.  In additional to the updates, there are still a ton of unanswered questions.  Talk to your tax pro about how this is impacting you.  Don’t have an accountant?  Message me or call to talk!