Stimulus Checks: A Deeper Dive

4/15/2020

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Stimulus Checks: A Deeper Dive

Through the $2.2 trillion stimulus package, millions of Americans are eligible to receive a non-taxable check to help alleviate financial burdens. All tax-filing American adults who are not a dependent of another taxpayer, have a work eligible Social Security number and adjusted gross incomes of up to $99,000 will be eligible for some form of direct assistance from the federal government.

Married couples and joint filers who collectively earn up to $198,000 are also eligible, as are heads of households who earn up to $146,500. Americans receiving Social Security benefits are also eligible to receive financial assistance. The Social Security Administration will calculate those rebates.

Taking a deeper dive into the earning brackets:

  •  Individuals who make up to $75,000 per year and heads of households who earn up to $112,500 will receive a $1,200 rebate from the federal government.
  •  Couples who earn up to $150,000 annually will receive $2,400.
  •  Individuals and families exceeding those will receive reduced payments on a graduated scale. The reduction is at a rate of $5 for every $100 of additional income an individual makes and eventually caps at $99,000 for individuals.
  •  Families will be eligible to receive $500 for each child age 16 or younger.

The IRS will use taxpayers’ 2019 tax returns, if filed, or their 2018 tax returns to determine rebate eligibility and amount. For Americans whose income comes entirely from non-taxable, means-tested benefit programs, such as Supplemental Security Income or Social Security, the IRS will access their data through the Social Security Administration to determine their rebate.

Individuals do not need to apply to receive these funds. If the IRS has access to an individual’s bank account information either directly or through the Social Security Administration, stimulus checks will be deposited into accounts. Those whom the IRS does not have bank account information for should input their information through the portal on the IRS website. Otherwise, paper checks will be mailed, but receipt is expected to take longer than the electronic transfer.

Eligible U.S. citizens or permanent residents who had a gross income that did not exceed $12,200 ($24,400 for married couples) for 2019 and were not otherwise required to file a federal income tax return for 2019, should apply at the Non-Filers Portal. After submission, the IRS will use this information to determine eligibility and payment amount and then send payment to the individual. Individuals in these groups who have qualifying children younger than 17 can use this application to claim the $500 payment per child.

To check the status of your stimulus check, please use the IRS’s Get My Payment portal.