2020 STIMULUS CHECK FACTS
The 2020 Stimulus Bill has been signed and is official as of March 27, 2020 however there are still many facets of it that have not been finalized.
I have summarized what is known as of today.
The stimulus check is actually based on 2020 income however since no one knows how much they will make in 2020 it is based on the following:
WHAT YEARS TAX RETURN IS IT BASED ON?
- It will be based on the 2019 tax return..IF FILED
- If 2019 is not filed then they base it on the 2018 tax return
- If neither has been filed whether due to neglect or just the fact of no need to file due to income thresholds set out by the IRS then they will go off the Social Security Administration (SSA) income database (every W2, 1099R and SS payment is sent to Social Security Administration every year). SSI income does not count
- If you did not have verifiable income on record with SSA then they are recommending you file a 2019 return quickly to show at least $1 of AGI.
AMOUNT OF CHECK
The base amount of the check will be (see limitations below):
$1,200 for a single person
$2,400 for a married couple
$ 500 for each dependent under 17 years old on your return.
LIMITATIONS ON AMOUNT OF CHECK
- Income limits (based on AGI) are:
Single person - $75,000 (maximum income $99,000)
Head of Household - $112,500 (maximum income $136,500)
Married couple - $150,000 (maximum income $198,000)
**The amount of check is reduced $5 per every $100 of income above the base amount
- If income exceeds maximum then no check will be issued however since it’s based on 2020 income you will be able to possibly obtain the check on your 2020 tax return next year if income meets the limits set forth.
WILL I HAVE TO PAY TAX NEXT YEAR ON THIS CHECK?
No! This check is not taxable on next years return.
WILL CHILD RECEIVE CHECK?
A child over the age of 16 years old will only receive a check if they were not taken as a dependent on the parents return.
If they claim themselves on their return then they will receive the full $1,200 if the income falls into the limitations section.
WHAT IF BANK ACCOUNT ON RETURN IS CLOSED OR NO BANK ACCOUNT?
The check will be direct deposited into the account noted on the last return filed…however they are supposed to be verifying prior to deposit whether the account is still open.
If account is inactive then a check will be sent to address on last return filed.
WHAT IF I MOVED?
If the last tax return address is incorrect and there was no bank indicated then you will have to file a change of address (quickly) with the IRS on Form 8822.
WHEN WILL I RECEIVE CHECK?
They have not indicated a time frame as of today.
They are planning on beginning to start sending within 3 to 6 weeks.
JUST ADDED TO STIMULUS CHECK:
- IRS WILL BE ADDING A LINK ON THEIR WEBSITE IN THE COMING WEEKS FOR THOSE WHO WISH TO ADD A BANK ACCOUNT FOR THE CHECK TO BE DEPOSITED INTO (IF YOU HAVE NOT HAD A BANK ACCOUNT ON PAST RETURNS FILED)
- A "SIMPLE RETURN" WILL NEED TO BE FILED WITH BASIC INFORMATION AND BANK ACCOUNT INFORMATION FOR THOSE WHO DO NOT HAVE INCOME THAT CAN BE VERIFIED IN THE DATABASE.....NOT SURE IF THIS WILL BE ON URS SITE OR NOT THEY HAVE NOT LET US KNOW YET.