Congress just passed a Stimulus Package to inject around $2 trillion into the U.S. economy. As expected, the Stimulus contains a lot of complicated politics. In order to help you understand what it means for you, your family, and your business, my colleague Tim Seeger and I will be presenting a number of articles designed to break down the politics, and outline exactly how the Stimulus effects you. This article is specific to what the Stimulus means to you and your family.
How much money will I receive?
The amount you will be entitled to receive relies on three main factors: 1) whether you filed your taxes individually, head of household, or jointly; 2) your adjusted gross income (AGI); and, 3) how many children you have. These factors are found in Subtitle B—Rebates and Other Individual Provisions of the Stimulus, which can be found, here.
Here’s how the amounts will be calculated:
- If you filed individually and received less than $75,000, you will be eligible for $1,200.
- If you filed Head of Household and received less than $112,500, you will be eligible for $1,200.
- If your filed jointly and have a combined income less than $150,000, you will be eligible for $2,400.
- Taxpayers with children would receive an additional $500 per child, on top of the above amounts.
- If your income exceeded $75,000 (if filed single), $112,500 (if filed Head of Household), or $150,000 (if filed jointly), the amount of the payment will be phased out by 5% of the additional income. This means that your payment will decrease by $5 for every $100 over the threshold numbers. (Find out more detailed information, here).
- Taxpayers with income above $99,000 (individual), $136,500 (Head of Household), and $198,000 (joint) will be phased out completely, depending on the number of children you have. (Find out more detailed information, here).
- If you had little or no income tax liability and received Social Security Benefits, you will still be eligible if you received a Form SSA-1099 or Form RRB-1099. This means you will qualify even if you did not file a 2018 or 2019 tax return.
How do I determine my income?
Your income will be based on your Adjusted Gross Income. This can be found on your tax return. The Government will be determining your income based on your 2019 tax return (Line 8B on your Form 1040). If you haven’t yet filed your 2019 return, it will be based on 2018 tax return (Line 7 on your Form 1040).
When will I get the money?
The bill says that the money will be issued “as rapidly as possible.” Additionally, the Treasury Department is required under this bill to run a “public awareness campaign” which will give further information about the program.
How will I get the money?
While there is not an exact time frame, it is important to know how you will receive the money:
- First, you do NOT need to sign up or fill out any forms to receive this money. Michigan’s Attorney General has already warned of scams – so keep this in mind and do not give out personal information, including your social security number, over the phone or online.
- If you have received a tax refund in the last two years by direct deposit, your money will be deposited into that account.
- If you have not used direct deposit in the last two years, a paper check will be sent to your last known address.
- 15 days after payment has been sent to you, the IRS will send a letter to your last known address, indicating: 1)the method of your payment; 2) the amount you received; and 3) a phone number to contact the IRS if you did not receive your payment.
There are a lot of other factors that play into whether you qualify for the payments and exactly how much you can receive. Please visit our Grewal Law website for more information.
Daniel Barnett is an associate attorney with Grewal Law PLLC. His practice areas include commercial litigation, general civil litigation, family law, criminal law, and, personal injury.