Quick Facts Regarding the 2020 Stimulus Check provided by the CARES Act
Pamela A. Martin, AIF®
April 8, 2020
In an effort to stimulate the economy during this time of economic disruption while we shelter at home, the CARES act was passed and could put cash into your pocket by way of economic stimulus checks. Just how much will you receive is the golden question being asked by many.
The economic stimulus check amount begins with $1,200 and is adjusted from there. A single adult, those married filing separate or a qualifying widower with no more than $75,000 AGI will receive the $1,200 while those married filing joint under AGI of $150,000 together will receive $2,400.
Those over these AGI limits will have their stimulus check phased out, with the possibility of receiving a lesser amount or nothing at all. Those receiving Social Security or SSDI benefits are eligible for the stimulus check, provided they fall within the AGI limits. Individuals with dependent children 16 and under will receive an additional $500 per child. This child benefit is also subject to the AGI income phase-out. Here you can find Kiplinger's Stimulus Check Calculator to estimate your potential benefit.
The IRS will utilize the most recent of the 2018 and 2019 tax returns. If you have not yet filed your 2019 taxes and made less in 2019 than 2018, now is the time to file before your stimulus benefit amount is determined. Filers with a new child during 2019 should also consider filing now to receive the credit on the stimulus check.
In the event your stimulus check does not include an amount that you would have been entitled to had you filed your 2019 tax return prior to benefit determination, you will see a credit on your 2020 taxes and receive the benefit at that time. You still will get the benefit, but its receipt will be deferred until the 2020 taxes.
Any person claimed as a dependent on someone else’s taxes will not receive a stimulus check. This includes children living at home who are 17 or 18 years old or college students who are 23 or younger at the end of the year and don’t pay at least half of their living expenses. Parents who are claimed as a dependent of their children also fit into this category of ineligible for the stimulus check.
The stimulus check will be paid in the same manner as you receive tax refunds or pay tax liabilities. If you have a bank on file with the IRS, you will receive the check by direct deposit and a confirmation letter in the mail. Otherwise, you will receive the check by mail to your last known address. When the stimulus check will be disbursed is still being determined.
As many families are facing disruption in their lives, through changes in work conditions, children’s schooling and work furloughs, stimulus checks are meant to stimulate the economy. Should you find yourself in a position of not having your finances disrupted during this time, perhaps you may consider looking to others would who may benefit from the extra funds – family, friends, community, charities. During these trying times, may we all come together to lift each other up and lighten the load for those feeling most of the burden.
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