Here are the basic points of the new economic stimulus money that individuals will soon be receiving from the government:
- Everyone over 21 years old and making up to $75,000 will get $1,200 from the government. If you make more than $75,000, the amount starts to phase out until $99,000. If you earn over $99,000, you won’t get anything. The amounts are determined based on your adjusted gross income in your 2018 or 2019 individual tax returns, whichever is the latest filed. If you are on social security and don’t have to file a tax return, the government will just directly deposit your money into the bank account where your social security money is deposited. This is automatic.
- If you file your tax returns jointly, the income limits double as do the checks. If you have dependents under 17 you will receive an additional $500 per dependent.
- If you qualify based on your income in 2018 and not in 2019, you can wait to file the 2019 return because it isn’t due until July 15th. If you qualify in 2019 and not 2018, and haven’t filed 2019 yet, file it asap!
- If you haven’t filed a 2018 or 2019 tax return, you can go to the irs.gov website and file a simple return, if you qualify for that. It’s basically if you have a W-2 and nothing else. Otherwise, you should file the 2019 return asap.
- The IRS obtains your direct deposit information from the tax returns. If you didn’t provide that information on your most recent tax return, the IRS is currently working on a portal on the IRS.gov website to upload your banking information. As of today, April 4, 2020, that portal is not yet set up. You will have to keep checking on that website.
The bottom line is most people who file income tax returns don’t have to do anything to receive the stimulus money. If you haven’t filed a tax return in a while, you should at least file the 2019 return asap and include your direct deposit information. If you are not required to file, keep checking the irs.gov website to upload your banking information. If the IRS doesn’t have that information, you will have to wait to receive the check in the mail, which could take months.
If you have any questions or need a tax return filed, contact Sternbach & Rose, CPAs, we’re here to help.
Front Photo Pixabay