Stimulus Check — Answers to Your Questions
The Coronavirus Aid, Relief, and Economic Security, or CARES Act, was signed into law on March 27, 2020. Millions of Americans will receive an Economic Impact Payment, also known as a stimulus check, from the federal government as part of this Act. Many have questions regarding this payment such as, “Am I eligible to receive a stimulus check?”, “What amount will I receive?”, and, “When will I receive it?”
Here are the answers to some of the most popular questions asked.
1. When will I get my stimulus check?
The most accurate answer we can give you is, it depends. For those people who gave their direct deposit information on one of their last two tax returns (2018 or 2019), you should receive your check sooner than later if you haven’t already. The IRS sent the first round of checks on April 9, 2020, as long as they had direct deposit information on file.
If you received a paper check from the IRS on any tax refunds, as of this writing on April 15, 2020, the IRS will begin sending the stimulus payment via paper checks on April 24, 2020. The first checks will go to the taxpaying citizens who have the lowest adjusted gross income and then send the next round of paper checks to the next income level up, and so on. In other words, if this is your method of receiving your stimulus payment and your income is on the higher end of the limits, it maybe this fall before it arrives in your mailbox.
2. What if I want to receive my stimulus check by direct deposit?
If you would like to give your bank information to receive your stimulus payment by direct deposit, the IRS has launched a website. This website will provide you with the ability to add your direct deposit information for your bank to get your check quicker. As you can imagine, the website has had a high amount of users, and the IRS is watching the volume of people on the site. Please be aware that if the volume is too high, you may experience a short wait in an online “waiting room” until site capacity becomes available. Use this site to also check on the status of your stimulus payment.
3. What amount will my stimulus check be?
Like question number 1, the answer is, it depends. But before we get ahead of ourselves, we need to outline who will not be receiving a stimulus payment. If you are a single filer and make more than $99,000, you will not be receiving a stimulus payment. Likewise, if you file your taxes jointly and make over $198,000 (without children), you will not be receiving a stimulus payment.
If your AGI (Adjusted Gross Income) is less than $75,000 for a single filer, less than $150,000 for a Joint (Married) Filer, and less than $112,000 for a Head of Household than you will qualify for a stimulus payment. For taxpayers who fall into one of those categories, single filers will get $1,200. Joint and Married filers will receive $2400, and for each dependent under the age of 17, you will also receive $500.
But what if your income falls between the maximum amounts and the amount that will receive the full stimulus check? In that case, your stimulus payment is $5 lower for every $100 you earn above the single, joint, and head of household limits up to the maximum income limit. In other words, not everyone who will receive a stimulus check will receive the full $1,200 or $2,400 if you fall in-between the maximum and minimum AGI limits.
4. When I file my 2020 taxes, will I have to pay taxes on my stimulus payment?
No. An additional word of note. While some people are suspicious of inputting their personal information, especially bank information, on an online form, please be reassured that the IRS website and subsequent forms are safe and secure. If you plan on using the site, please make sure you are on the correct site listed above before entering your information. It may be helpful to have your latest tax return nearby. Also, if you choose to use the website to check the status of your stimulus check, please be advised that the information is only updated once a day.
As always, if you have any questions regarding your stimulus payment, do not hesitate to contact Modern Wealth Management to get the answers at 913-393-1000 or schedule a complimentary consultation below.
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The views expressed represent the opinion of Modern Wealth Management an SEC Registered Investment Advisor. Information provided is for illustrative purposes only and does not constitute investment, tax, or legal advice. Modern Wealth Management does not accept any liability for the use of the information discussed. Consult with a qualified financial, legal, or tax professional prior to taking any action.