IRS Stimulus Checks – COVID 19
With the ongoing Statewide Stay at Home Order, many taxpayers are calling their lenders to push payments out to make ends meet; at least till the stimulus checks arrive. The IRS has issued a statement regarding the stimulus payments. However, there is a catch! If you want your stimulus payment the IRS must have your tax return for either 2019 or 2018. If you were not required to file a return, the IRS will use nontaxable income reported to them by third parties to figure your stimulus payment. Those that receive Social Security benefits, Service-Connected VA benefits, or other similar type benefits will qualify based on the amount reported to the IRS on the Income Information Statements (i.e., 1099-SSA).
For taxpayers that have income (taxable or nontaxable) that does not exceed $75,000 for single filers, or $150,000 for joint filers, the credit amount is $1,200 and $2,400 respectively. Taxpayers that file as head of household will receive $1,200. The payment phase out range is at $75,001 – $99,000 (single), $112,501 – $146,500 (head of household), and $150,001 – $198,000 (joint). In addition, taxpayers that have qualifying children under the age of 17 will receive $500 per child.
Those that have no income are eligible for the tax credit.
Additionally, those seeking unemployment benefits, provisions were made to increase unemployment benefits by $600 per week through the end of July. And, an additional 13 weeks of benefits are allowed beyond the normal eligibility. The one week waiting period is waived.
If you have not filed your tax return in the last few years but are required to file, then my advise to you is to file your return.
For those taxpayers that did not provide the IRS with direct deposit information in prior filed tax returns, you will receive a check in the mail. Although, it will come up to a month later. If you do not qualify for the stimulus check for one reason or another, you may still qualify for the credit by filing your 2020 tax return next filing season.
Check back with us – more information to come! Please follow the CDC guidelines to keep your families safe and limit the spread of the virus.