The Coronavirus crisis has caused our country to have to adjust in many ways. Beyond the health issues, the financial burden upon citizens all over our country has been tremendous. There are many efforts being made to combat the economic issues which have come as a result of the pandemic, but the stimulus payments are one of the most historically unique. The CARES act was signed by President Trump to provide much needed relief to individuals, businesses, and industries significantly impacted. With the act providing two trillion dollars in relief, the CARES act is the largest emergency aid relief in our nation’s history. Most individuals have the greatest interest in the 250 billion which is being dispersed to American citizens. You could be getting a direct deposit or check as a result of the CARES Act. At Fricke & Associates, LLC, we want to be a help amid this crisis. Our team is standing by to help you understand how the CARES Act may benefit you.
- Individuals (Single Filing)—If you have an adjusted gross income of $75,000 or less, you will be eligible to receive the full payment of $1200. For every $100 more you make over $75,000, your payment is reduced by $5. Individuals who make more than $99,000 are not considered eligible for the stimulus payment.
- Married Couples—If you and your spouse have a combined adjusted gross income of $150,000 or less, you will receive the full amount of $2400. Same rule applies about losing $5 for every $100 you make over $150,000. Couples making over $198,000 will not receive a stimulus payment.
- Head of Household—If you have an adjusted gross income of no more than $112,500, you will receive the full $1200. You can receive reduced payments unless you make more than $136,500. There will be no stimulus payments for those making more than $136,500.
The FAQS of Stimulus Payments:
- What About My Children?—If you have children under 17, you may be eligible for an additional $500 per child. If your children are over 17, there are no payments available for you.Even if your 17-year-old is in college, they are still considered a dependent on your tax form and may not file for their own stimulus payment.
- What if I am Not Making an Income or I am on Social Security?—You do not have to make an income to qualify. Even if you are on social security, you can receive the stimulus payment, assuming your income does not exceed the stated limits.
- How Do I Get My Payment?—You do not have to do anything. Your payments will be processed automatically. If you filed your 2019 taxes already, the government has your updated information. Even if you have not, they can pull from your information the previous year. If possible, go ahead and file your tax return to ensure your information is the most accurate. Retired recipients, who do not have to file a return, can have their information pulled from the Social Security Administration’s database.
- When Will My Payment Come?—The date has not been disclosed. Treasury Secretary Steven Mnuchin originally said that he was shooting for April 6th, but this date may have been a little too hopeful. The stimulus payments will likely come through in later April. They could be sent out in waves so it may not be a universal date regardless.
- How Will My Payment Come?—Because social distancing and expedience are the goals, the payments will mostly be sent through direct deposit. If direct deposit is not an option for you, the government will issue paper checks.
- Will They Let Me Know When It Should Be Deposited?—You will receive a notice from the Treasury, highlighting the amount that was deposited. If there has been an error, you will have a number to call provided with the notice.
- Will My Stimulus Payment be Taxed?—Thankfully, no!
- How is The Stimulus Payment Possible?—The stimulus payment is being viewed as an advance refund on your 2020 return. Don’t worry—you will not have to pay it back if you do not actually earn the refund. If you deserve a greater return on your 2020 return, you will receive additional payment then. If you are still unsure about how this works, give us a call at Fricke & Associates, LLC. We would be happy to walk through it with you as it is a confusing circumstance.
- Will the Stimulus Payment Impact My 2019 Refund?—No, it will not.
- Will I Receive the Payment If I Owe the IRS From Previous Years?—You will receive the full amount regardless of back taxes owed or liabilities.
If you have further questions regarding the stimulus payment or the CARES Act, call Fricke & Associates, LLC. We are standing by to help!