You might have some questions about the federal stimulus check.

Do I qualify for a stimulus check? When will I get a stimulus check? How much will my stimulus check be? What if I don’t have direct deposit set up? What if I haven’t filed my taxes yet?

We have some answers. Here’s what you need to know. Please consult your financial professional if you have any questions on concerns.

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law March 27, 2020. The $2 trillion economic stimulus package includes a one-time payment of up to $1,200 per person. Many Americans qualify for this help the federal government is providing to U.S. citizens.

To clarify, the stimulus payment is not taxable income. You will not owe taxes on this money. Also, a stimulus check is separate from your tax refund. If you’re due a tax refund, you will still get that if you file your return.

Who Will Get a Stimulus Check and How Much?

Not everyone will get a payment through the stimulus package, although many will. You can be eligible for a stimulus payment whether you’re employed full time, part time, self-employed, unemployed or retired.

You must have a Social Security number or Adoption Tax Identification Number. You cannot be claimed as a dependent on someone else’s tax return.

Whether or not you qualify is also determined by your adjusted gross income (AGI) from your 2019 tax return, or your 2018 tax return if you haven’t filed your 2019 taxes yet. To receive the full stimulus payment amount of $1,200 per person, your AGI must not exceed these limits, according to your tax filing status:

• Single filer, married filing separately or as a qualified widow: your AGI must be less than $75,000.
• Head-of-Household: your AGI must be less than $112,500.
• Married filing jointly: your AGI must be less than $150,000.

If your AGI is above the amounts listed above, your credit will be reduced by $5 for every $100 over the limit.

Parents will receive a $500 payment for each child under the age of 17.

Americans on disability or Social Security retirement will receive the maximum amount of $1,200 per person.

We have a handy stimulus check calculator we can use to help you figure out how much you may get from your stimulus check.

 

How and When Do Stimulus Checks Arrive?

If you filed your 2018 or 2019 taxes, you don’t need to do anything. The IRS will automatically direct deposit or mail payments to the bank account listed on your last tax return or mail a check to the address on record if no account information is available.

Stimulus payments will also go automatically to Americans who are on Social Security retirement and disability, regardless of whether they have filed a tax return in 2018 or 2019.

On April 10, the IRS sent out a statement that the distribution of economic impact payments will start this week. The agency said they will be distributed automatically, with no action required for most people.

The IRS also announced it is working on building a new tool called “Get My Payment” to track the stimulus checks. The “Get My Payment” tool will “provide people with the status of their payment, including the date their payment is scheduled to be deposited into their bank account or mailed to them.”

The IRS said the new online tool will also let eligible people submit bank information, if they haven’t already, so they can get their payment quicker than waiting for a paper check in the mail.

“Get My Payment” will be on IRS.gov should be available for use by Friday, April 17.

Americans with the lowest income will get mailed checks first.

Here’s the approximate timetable for the first checks:

• Taxpayers with income up to $10,000: April 24
• Taxpayers with income up to $20,000: May 1
• Taxpayers with income up to $40,000: May 15
• The rest of the checks will be issued by gradually increasing income increments each week. Households earning $198,000, who file jointly, will get their reduced checks on September 4.

The last group of checks will be sent on September 11 to those who didn’t have tax information on file and had to apply for checks.

It could take up to 20 weeks or more for a paper check to arrive. However, the web portal for tax payers to offer banking information, so that they can to receive those payments electronically, should be available April 17. Go to this page and click on “Get My Payment” when it’s available.

If you haven’t filed a tax return in 2018 or 2019, file your 2018 taxes now to ensure that the date you get your stimulus payment isn’t impacted.

Should I File My 2019 Tax Return Now?

Maybe not. The deadline has been changed to July 15th, 2020. If your income was higher in 2019 than it was in 2018, then you might want to wait as long as possible to file taxes, so that your 2018 income will be used to determine the amount of your stimulus check. 

If, on the other hand, you earned significantly less in 2019 than in 2018, it’s in your best interest to file right away.

Beware of Stimulus Package Scams

Any situation can bring about a scam, so beware of suspicious communication from anyone claiming to be involved with processing stimulus checks.

The federal government will not call or email you or reach out via social media. Any outreach like this is likely a scam, so don’t reply, share any personal information or send money.

Stuck at Home?

As we  know, Covid-19 has nearly disrupted the entire world.  The stimulus payments are a small way to bring some peace to the homes of our loved ones.  However if you haven’t filed your 2018 or 2019 taxes and are restricted to your homes, what are you to do?  Fortunately DW Tax Prep had your needs in mind far before the impacts of this virus.  Our secure mobile app allows you a simple Snap, Send & Sign system that gets the job done right from your mobile device.  Click here to download now and get it done within 24 hours.

We will continue to keep you informed as updates are made available.