As you all are aware, the Senate just recently approved a $2 trillion coronavirus stimulus package. The package is expected to boost all parts of the economy and also benefit Americans directly, including those who are unemployed, self-employed and contractors, and those still working. Americans have been promised one-time payments of up to $1,200 for each adult and $500 for each of their children. It must be noted that not all will get the full $1200. Thus, a big question that many will have now is how much money they would get and when.
Coronavirus stimulus package: how much will you get?
The coronavirus stimulus package will give out $290 billion in direct payments to individuals and families. Such a payout could prove a lifeline for millions of Americans who have lost their jobs or have seen a drop in their income due to the outbreak.
As said above, you may not be eligible for the full $1200 amount. The amount of money you would get depends on the household's annual income. This is because the package is primarily aimed at helping low- and moderate-income families. So, it is possible that some wealthier families or individuals may not get a stimulus check.
If you have already filed your 2019 taxes, then the same will be used to determine your stimulus check. And, if you have not yet filed your taxes, then your 2018 returns will be used.
Talking of how much you would get, if your adjusted gross income (AGI) is below $75,000, then you will get $1200.
On the other hand, if your AGI is above $75,000, then you will get a smaller amount, or $5 less for every $100 in income above $75,000. Or, to put it simply, your amount will be decreased by 5% of the amount your income exceeds $75,000. For example, if your salary is $85,000, then you would get $700, i.e. $1200 less $500 [($85000 - $75000) x 5%]. Thus, individuals with a salary of over $99,000 won’t qualify for the benefit.
Married couples will get this much
If you are married, and file jointly with your spouse, then you will be eligible for a $2,400 check, provided your household income is less than $150,000. As noted above, the amount of stimulus would gradually reduce for those with household incomes over $150,000. Couples with household incomes over $198,000 won’t qualify for the stimulus check.
Also, if you have a dependent child, you get $500 more for each qualifying child. There is, however, a catch – only kids below 17 are eligible.
In case you file your taxes as a "head of household" (usually single parents), then you will get the full $1200 if your annual income is $112,500. The amount will gradually reduce for those with an annual income of up to $136,500.
Also, people with little or no tax liability will be eligible to get at least $600 (or $1,200 for joint returns). It must be noted that workers in the U.S. with no green card don’t qualify for the stimulus check. One added benefit of these checks is that they are not taxable.
If you haven’t filed a tax return for 2018 or 2019, you could still be eligible for the check provided you got a Form SSA-1099 for the year 2019. This is the form that the Social Security Administration sends out every year to those who get Social Security benefits. Also, the IRS (Internal Revenue Service) recommends those who haven’t yet filed a tax return for 2018 or 2019, to do so quickly so that the government has up-to-date information on you.
You can also take the help of this calculator by OmniCalculator to calculate your stimulus check.
When and how will you get the money?
Now that you know how much money you will get from the coronavirus stimulus package, let’s talk about when the money will be credited to your account.
On Wednesday, Treasury Secretary Steven Mnuchin said the checks would start going out in the next three weeks for most Americans who have filed their individual tax returns.
If you have already provided the Internal Revenue Service (IRS) with your bank account information, then the payment will be made via direct deposit. Those who have not shared their bank account information will get the checks via mail to their "last known address." The IRS has 15 days to inform you about the amount you will get and the method of payment. Moreover, the IRS will also send you a contact number to contact in case you didn’t get the check.
Questions are already being raised if the government will be able to meet its three-week timeline for making the one-time payments. Many believe that those who haven’t provided bank account details to the IRS may have to wait longer. So, if you have moved recently, then you should notify the IRS as soon as possible.
Another thing you must know is that you don’t need to apply to get the stimulus check. You will automatically get it if you have filed your income taxes in the past two years. Also, the Treasury Department plans to run a "public awareness campaign" about the program, including for those who did not file a tax return for 2018 or 2019.
Since the amount will be credited automatically, IRS is requesting that people not call them with questions. Rather people are advised to check this website regularly for updates about the program.