Friday, in response to the economic impact of the coronavirus, Congress approved a $2 trillion emergency stimulus package. The package, known as the CARES Act, sets aside $250 million directly for Americans.
Detroiters, along with the rest of the nation, now wait in anticipation to receive their check. In the meantime, here are some questions you probably have along with information you need to know to access your stimulus money.
Who gets the stimulus check and how much do you get?
Anyone who is not a dependent and has a social security number will receive funds.
- Individual Single Filing Status: Those with an adjusted gross income of $75,000 or less get $1,200. For every $100 in income over $75,000 the payment is lowered by $5. Those making more than $99,000 annually are not eligible.
- Married Folks: Those with an adjusted gross income of $150,000 or less receive $2,400. For every $100 in income over $150,000 the payment is lowered by $5. Those making more than $198,000 are not eligible.
- Head of Household: Those with an adjusted gross income no greater than $112,500 get $1,200. Payments are lowered for those above $112,500 but below $136,500. Those greater than $136,500 are not eligible.
What about parents?
If your kid is younger than 17, you could get an extra $500 for each child. If your child is in college, you will not receive anything if they are 17 or older.
What about individuals on Social Security or don’t work for income?
As long as your total income does not exceed the amounts listed above, you are eligible.
What do you need to do to get the check?
The payments are automatic and based on your 2019 tax return. If you haven’t filed for 2019 by the time the checks are sent, they will use your 2018 return. Those on social security will receive it the same way they receive social security payment.
When will the money come?
The government’s goal is to start sending payments on April 6, but analysts believe the process won’t start until later in the month.
How will you get the funds?
The government would rather send money through direct deposit. Paper checks will be sent when needed.
Will you be alerted when you get it?
The US Treasury will notify you via mail. It will include how the payment was processed and provide a number if you have not received payment yet.
Will you be taxed for your stimulus check?
No, the money is not taxable.
Does this stimulus affect your tax refund for 2019?
No, it will not affect it, or your expected 2020 return.
What if you already owe the IRS?
You will still receive your payment in full.
For more information regarding stimulus checks and coronavirus tax relief, visit https://www.irs.gov/coronavirus.
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