On March 27, the Coronavirus Aid, Relief, and Economic Security Act (CARES) was passed by Congress and singed into law as a response to mitigate the impact of Covid-19 in the United States. With a record-breaking relief package of US$2.2 trillion, this is where your stimulus payment comes from.
Either via direct deposits to bank accounts, or through the mail as prepaid debit cards or paper checks, the IRS has delivered around 160 million payments, but an estimated 35 million Americans have not yet received theirs. According to the IRS, the agency will continue sending checks through the end of year.
Here are 6 things to know if you’re among those 35 million Americans who haven’t yet received their stimulus payment.
1. How Much Will My Stimulus Payment Be?
If you’re a single filer, the maximum stimulus payout is US$1,200. If you’re a married couple filing jointly, it’s US$2,400. The payout is based on your adjusted gross income, or AGI.
Single filers under US$75,000 in AGI, heads of household filers under US$112,000 in AGI, and married couples filing jointly under US$150,000 in AGI are eligible to get the full payout.
If you have children age 16 or under, parents will get an additional US$500 per child.
2. Social Security Beneficiaries Are Eligible Too
Senior citizens who are Social Security beneficiaries are also eligible for the stimulus check. Because the Internal Revenue Service (IRS) can access Social Security beneficiaries’ payout files, they can send stimulus payments to the same account of those of the beneficiaries.
According to the Treasury Department, recipients of Social Security who are not typically required to file tax returns will not have to file an abbreviated tax return to receive their payments.
3. What Is My Eligibility Based On?
It’s based on your adjusted gross income in your most recent tax return. Tax Day for the 2019 calendar year was July 15, but if you didn’t get to file the 2019 calendar year, the IRS will use the adjusted gross income from your 2018 tax return to determine your eligibility.
4. Does Everyone Qualify For A Stimulus Check?
High-income earners, dependents 17 and older (including dependent seniors), and noncitizens without a legal route to citizenship are not eligible for the stimulus check.
Depending on your adjusted gross income, you’re considered a high-income earner if it’s above US$99,000 as a single filer, US$198,000 as a married couple, or US$136,000 as a head of household.
5. How Can I Check The Status Of My Economic Impact Payment?
The IRS has set up the Get My Payment application, designed to help you get your payment status and see your payment type.
6. Will I Owe Any Tax From My Stimulus Payment?
The answer is no. The IRS does not consider it an income for the 2020 tax year, so the payment is not taxable. The whole amount in your check is yours to keep. Basically, the Economic Impact Payment was set up as tax credit for Americans. The only scenario in which the IRS will reduce your payment is in case of past-due child support.
For more information about your eligibility, payment amounts, and other frequently asked questions, visit the Economic Impact Payments Information Center.