The 2020 Stimulus payment
The 2020 guide to the new stimulus payments as a relief package from the US
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Am I going to get a check from the government for the coronavirus for economic stimulus relief?
There have been rumors of the amounts of payments that are going to be paid under the new stimulus relief for our economy in 2020. Some details have been released by the IRS. The stimulus payments for individuals is known as ”Economic impact payments”
The US Dept of Treasury & the IRS announced the payments will begin in approximately 3 weeks from 03/30/2020. Normally the Internal Revenue Service administers tax law, as in processing tax returns, issuing refunds, auditing taxpayers and the collection of delinquent taxes. The IRS will administer the issuance of stimulus payments to individuals.
There are eligibility guidelines, and for the most part, most people do not have to do anything to receive the money.
The payments will be based on either the 2019 tax filing - which are ultimately due 07/15/2020. If you have not filed the 2019 tax return, the stimulus will be based on the 2018 tax return filing.
1. What is the amount of payment I will get for the COVID 19 Relief Stimulus payment?
The amount is $1,200 per adult. If someone filed a Married Filing Joint Tax Return, the amount would be $2,400 for the couple.
There is an added kicker of an additional $500 per dependent if the dependent is under 17 years old. See the Charts below for the amounts you will be eligible.
2. Am I eligible to receive the stimulus payment form the relief law passed for COVID 19?
There are limits based on income. Individuals who earned $75,000 or couples who earned $150,000 would be limited on the amounts of the stimulus payments, the amounts of the payments being reduced until no longer being eligible. The individuals who earn over $99,000 & Joint Filers earning over $198,000 will not be eligible.
3. How will the government distribute the stimulus payment to me?
The IRS will be the administrator of issuing the payment. According to the IRS, if the 2019 tax filing was issued as a direct deposit, the stimulus payment will also be directly deposited into the same account.
However, if there is no checking account info, the IRS might be posting details on providing a bank account so that the funds may get deposited into the account.
Another way the IRS will distribute the money is to mail out a paper check to the last address you have filed with the IRS.
* Tip. Upon filing the tax return, entering a new address automatically updates your address on file with the IRS. If you have moved since the last filing, you will have to fill out IRS FORM 8822, Available Here.
4. Do I absolutely have to file a tax return to receive the Stimulus payment form the Corona Virus Relief law?
This is an update to the original information. There are some people that are exempt from filing a tax return, such as low-income earners, social security benefit recipients, senior citizens, certain veterans & other disabled persons.
You may not need to file an informational tax return. Instead, you can click here to register; https://www.irs.gov/coronavirus/non-filers-enter-payment-info-here
If you have not filed a tax return for 2018 or 2019, it is advisable to file the tax return.
*Tip - the IRS can send you the wages & income transcript for the 2018 tax year just in case you do not have access to your tax records. This transcript will allow you to file your tax return.
Here at Semper Tax Relief, we are familiar with the process of filing a past year tax return. When we have a power of attorney on file with the IRS, we can easily download the past year's ( 2018) wage & income transcript, and subsequently, file the 2018 tax return
5. Is this a one-time stimulus payment to people for the Corona Virus relief?
The government has issued stimulus packages to people in the past. Some being the form a credit on the tax return such as the making work pay credit, while another was an ongoing payroll tax cut in our paychecks.
According to the IRS, this stimulus payment is a one-time payment. Once you receive the funds, it is up to you on what you want to spend the money on.
The time frame for issuing the money to you will be one time, however, if you have not filed the return, if you do so later this year, the IRS will then process the payment out to you.
** This information is the basics of what was released by the IRS. There are additional details not yet available. Stay tuned for more information
In conclusion, review your tax documents to ensure a correct address and tax filing.
***Warning. The IRS will never call you to ask and verify your banking information. You bank info, your routing number & account number is private information you should never give out over the phone. Scammers will try to prey on the innocent to get this information. The IRS will be posting a link where you may change direct deposit information on their website, however, the link is not yet posted.
What will you be spending your money on? Post your comments below
