The CARES Act financial relief package, passed in March 2020, provides more than $2 trillion in small business loans and grants, and stimulus checks for American taxpayers. Eligibility and specific payment amounts are determined by income. Here are some important details about who should receive the stimulus payments and how to follow up with the IRS if you need to.
Taxpayers earning up to $75,000 ($150,000 for married couples, or $112,500 for those filing as Head of Household) per year, according to the adjusted gross income on their 2019 (or 2018, if 2019 has not been filed) tax return, will receive a $1,200 stimulus check. Those earning $76,000–$99,000 ($198k for married couples) per year, or those filing as Head of Household earning up to $136,500 will receive smaller stimulus checks. The amount will reflect a 5% reduction per $1000 over the full amount income limits.
If you earn $99,000 or more ($198,000 married-filing-joint, or more than $136,500 as Head of Household), you will not receive the individual stimulus check.
The CARES Act also provides $500 per qualifying child (16 years old and under).
If you do not qualify for a check based on 2018/2019 income, but your 2020 income falls below the CARES Act thresholds, you will be eligible to receive the amount as a rebate on your 2020 tax return.
There are additional taxpayers who may not receive a stimulus check:
· If you are 17 or older, but someone claims you as a dependent on their 2018 or 2019 tax return
· If you don’t have a social security or adoption identification number
· If you are behind on your child support payments or owe back taxes, the stimulus money will pay for those first.
Qualifying families and individuals who used direct deposit on their 2018 or 2019 tax return started receiving payments the week of April 13th. Additional rounds of payments are underway for those direct deposit Social Security beneficiaries who did not file tax returns in 2018 or 2019. The third round of payments should begin the week of May 4th, including mailing paper checks, starting with the lowest income individuals according to their 2018 or 2019 tax return.
IRS web portal
The IRS created a web portal to update information regarding and track stimulus payments. The portal is broken into 2 sections:
- Non-Filers Payment Info Form
- Get My Payment App
If you’re still waiting on your payment, this portal can help provide guidance to find your payment.
Non-Filers: Enter Your Payment Info Here
The Non-Filers: Enter Your Payment Info Here form is for those who did NOT file a tax return in 2018 or 2019, to provide simple payment info to get your stimulus payment quickly. You should use this application if:
· You did not file a 2018 or 2019 federal income tax return because your gross income was under $12,200 ($24,400 for married couples). This includes people who had no income. Or
· You weren’t required to file a 2018 or 2019 federal income tax return for other reasons
You will need to provide the following information to the Non-Filers form:
· Full name, current mailing address and an email address
· Date of birth and valid Social Security number
· Bank account number, type and routing number, if you have one
· Identity Protection Personal Identification Number (IP PIN) you received from the IRS earlier this year if you have one
· Driver’s license or state-issued ID, if you have one
· For each qualifying child: name, Social Security number or Adoption Taxpayer Identification Number and their relationship to you or your spouse
Filers: use the Get My Payment App
The Get My Payment App can be used to check your stimulus payment status, confirm your payment type and account information, or enter that information if the IRS doesn’t have it already.
Do I have to repay my stimulus check?
No, you don’t have to repay your stimulus check. This stimulus payment is considered a credit against your taxes owed. If you don’t owe taxes, that’s okay. It’s a refundable credit, which means if you qualify, you receive it whether you owe taxes or not. If you do get a stimulus payment based on 2018/2019 income but earn more than the qualifying income limit in 2020, you don’t have to pay it back; the rebate will be forgiven.
Do I get a check if I’m retired or receiving Social Security?
In both cases, you are eligible to receive a stimulus check. Adjusted gross income will be based on your 2019 tax return (or 2018 if no 2019 return filed yet). Those on Social Security DO NOT need to file a tax return to qualify, payment will be automatic. If you have not filed a return for either year, the rebate amount will be determined based on Social Security Administration records.
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