Many individuals and families have been hit hard financially due to the effects of the coronavirus that has caused an economic collapse. With businesses closed across the nation, and millions of hard-working Americans forced to stay at home to ensure their safety, the federal government is preparing to provide financial relief in the form of economic impact payments, commonly referred to as stimulus checks.
What is a Stimulus Check or Economic Impact Payment?
A stimulus check, as referred to during the COVID-19 pandemic, consists of payments that will be provided to the American people to offset their financial hardships during the current economic crises. These economic impact payments are a direct result of the $2.2 trillion fiscal stimulus bill (CARES Act) that was passed by Congress and signed by the president.
Stimulus Payments – Your Questions Answered
With millions of Americans out of work, many are eagerly awaiting their much-needed stimulus checks to help with this unexpected financial hardship. During this waiting period, many questions come to mind. Because of this, we are providing a comprehensive list of the most common questions regarding the coronavirus stimulus check.
1. Who is Eligible to Receive a Stimulus Check?
With a few exceptions, most U.S. residents are eligible to receive a 2020 stimulus check. Review the following information to determine your eligibility:
Tax Filers Who Meet the Required AGI Limit: 2018 or 2019 tax filers who have the proper adjusted gross income, as shown in the amounts below, and who meet certain criteria such as having a Social Security number, and are not claimed as a dependent by another taxpayer, are eligible to receive the full economic impact payment:
- Your Adjusted Gross Income is Not Higher Than:
- $75,000 for individuals
- $112,500 for head of household filers
- $150,000 for married couples filing joint returns
Tax Filers with a Higher AGI: Taxpayers over the income limit will still be eligible, but will receive a reduced payment if:
- Your Adjusted Gross Income is Between:
- $75,000 – $99,000 with a filing status of single or married filing separately
- $112,500 – $136,500 with a filing status of head of household
- $150,000 – $198,000 with a status of married filing jointly
Those Who are Not Required to File Tax Return: U.S. citizens who receive Social Security, Railroad Retirement, disability or veteran’s benefits, as well as those who don’t make enough money to be required to file taxes, are eligible to receive a stimulus check. Also included in this group are citizens who make no income, and those who receive benefits such as supplemental security income.
2. Who is Not Eligible to Receive a COVID-19 Stimulus Check?
Those who fall into one or more of the following scenario’s will likely not be eligible to receive a 2020 stimulus payment:
- If you were claimed as a dependent on someone else’s tax return.
- You currently do not have a valid Social Security number.
- You are considered a nonresident alien.
- You have filed any of the following forms: 1040-NR, 1040NR-EZ, 1040-PR or Form 1040-SS for 2019.
- You have an adjusted gross income that is greater than:
- $99,000 with a filing status of single or married filing separately
- $136,500 with a filing status of head of household
- $198,000 with a status of married filing jointly
3. How Much Money Will I Receive in My Stimulus Payment?
With the U.S. government preparing to release the funds to the American people in the hopes of easing the financial hardship brought about by the coronavirus economic shutdown, many are wondering just how much they will receive.
Review the following information to determine if you are eligible for the full amount or a reduced payment, and how much you will receive.
Full Payment: Eligible U.S. residents who meet the AGI requirement limits of $75,000 – single filers, $112,500 – head of household filers, and $150,000 – married filing jointly, will be sent $1,200 for individuals and $2,400 for married filing jointly. Additionally, they will receive $500 per eligible child.
Reduced Payment: Eligible citizens with adjusted gross incomes that are above the AGI limits can expect their stimulus payment amount to be reduced by $5 for each $100 above the $75,000, $112,500, $150,000 thresholds. Single tax filers with an AGI that exceeds $99,000, head of household filers that exceed $136,500, and joint filers with no children who exceed $198,000 will not be eligible and will not receive payments.
4. What Do I Need to Do to Get My Stimulus Check?
With so many American’s out of work during this coronavirus pandemic, as well as many individuals and families spending large amounts of money stocking up on food and supplies (money that was originally designated to pay their bills), many are now in desperate need of a stimulus payment. If this sounds like you, we can assume that you want to ensure that everything is done correctly, so there are no delays in getting your stimulus check. With that in mind, review the details below to make sure all your bases are covered, so that you can receive your economic relief payment with no issues or delays:
No Action is Needed in These Situations:
For those who meet the eligibility requirements as mentioned above, and have already filed your 2018 or 2019 taxes, then the IRS does not require you to take any further action. Additionally, those who receive Social Security, Railroad Retirement, or SSDI benefits, the IRS already has your information, so no action is needed and the IRS will send you a stimulus check by mail or direct deposit, whichever you typically use for your current benefits.
You Will Need to Take Action If these Situations Apply:
Have Not Filed Your Return Yet: If you are required to file a tax return, and have not done so, you will need to file in order to receive your stimulus check. The IRS is determining who is eligible through their 2018 or 2019 tax returns.
If you have not filed your 2018 tax returns yet, it may not be possible to file that year electronically at this point, and your taxes will need to be mailed. However, The IRS has recently stated that they may not be processing paper tax returns at this time, due to coronavirus safety concerns. This can cause a significant delay in your COVID-19 stimulus check being processed. Because of this, you will want to at least make sure your 2019 taxes are filed and done electronically.
The IRS Does Not Have Your Information: For those who are currently receiving a pension, survivor benefits from the Department of Veteran Affairs, receive veteran’s disability compensation, or you have an income level where you are not required to file taxes, you will need to take steps to provide your information to the IRS so they can verify your eligibility, calculate your stimulus payment amount, and have your correct address and direct deposit information on file. To do this, simply fill out the Non-Filers Economic Impact Payment online form.
5. Are Stimulus Checks Being Deposited This Week? When Will I Receive My Payment?
The coronavirus payments will not be deposited this week, but are due to arrive next week instead. This is actually quite fast and demonstrates just how strategic and efficient their planning and processing have been. When the 2008 financial crisis was taking place, and stimulus checks were set to be distributed to the American people, it actually took several months before stimulus payments were issued.
First Batch of Stimulus Payments Arriving Next Week: The IRS website posted on April 10th, that stimulus direct deposits for those who filed their taxes in the 2018 or 2019 tax years, are scheduled to be released next week. This could be as soon as April 13th-15th. The coronavirus aid payments being dispersed next week was also confirmed by Treasury Secretary Steven Mnuchin during a recent White House briefing.
Arriving in the Weeks to Come: If you receive Social Security retirement, SSDI, or are a survivor or disability benefits recipient, or you receive Railroad Retirement benefits, and have not filed your taxes for the years 2019 or 2018, you will automatically receive a payment in the coming weeks. The IRS has not announced a specific date as of today.
Arrival Dependent Upon When Information is Provided to the IRS: For those who are not required to file taxes due to their income level, and those who are receiving a pension, or veteran’s disability compensation, as well as survivor benefits from the Department of Veteran Affairs, your coronavirus stimulus check arrival date is dependent upon when the IRS receives your information. This information can be sent to the IRA via their Economic Impact Payment online form.
6. Can Stimulus Checks be Tracked?
Yes! You can use the Get My Payment tool to check the status of your stimulus relief check. It will provide the date your economic impact payment will be deposited into your bank account, or when your stimulus check will be mailed. Be patient though, there may be millions of people trying to access this tool, so there can be delays.
Get My Payment will also allow those who are scheduled to receive a paper check, the opportunity to fill out their bank account information so that they may receive their stimulus money by direct deposit instead. This will speed up the delivery date. Additionally, tax filers who, for whatever reason, did not need to provide the IRS with their bank information on previous returns, will be able to provide it through the Get My Payment tool.
7. Will the IRS Take My Stimulus Check if I Owe Back Taxes?
No. The IRS will not apply your COVID-19 stimulus payment toward taxes that you may owe. This is an economic relief payment specifically issued to U.S. citizens to help ease the financial burden of this unforeseen economic crisis. Taking your stimulus money would defeat that purpose.
8. If I Haven’t Filed My Tax Return Yet, How Long Will the Stimulus Checks Be Available?
If you have not filed either your 2018 or 2019 tax returns, and are concerned you might miss the deadline to receive your coronavirus payment; you still have time to file. Stimulus payments are available through the end of 2020. This is helpful for those who prefer to visit a tax professional, but do not feel comfortable doing so at this time. Even though you have until the end of the year, the IRS is urging those who have not filed, to do so as soon as possible. An alternative to visiting your tax professional may be to send your tax information via a secured upload system that your tax accountant may have available.
9. Are Coronavirus Stimulus Checks Taxable?
10. Are Stimulus Checks an Advance on Our 2020 Tax Refunds?
Some people are hearing talk of the stimulus checks being an advance on their 2020 tax refund, and wonder if this means the government will be taking away a portion of their refund equal to the amount of their stimulus payment next year. Rest assured, the answer is no. Your economic impact payment will not take away from the amount that is due to you as a refund when you file your 2020 tax return.
The confusion rests in the wording; the economic impact payment is actually an advanced 2020 tax credit. You normally don’t claim a tax credit before you complete your tax return. However, due to the coronavirus economic crisis, the federal government is providing taxpayers their tax credit now, when it’s needed most, in the form of a stimulus payment.
11. Are Stimulus Checks a Loan?
Your COVID-19 relief payment is in no way a loan. Recipients will not be required to pay this relief money back in any form, at any point in time. The coronavirus stimulus checks are one-time payments from the government to assist individuals and families during this worldwide pandemic that has caused great financial difficulties. They are freely provided to the citizens of the United States and are not considered government loans.
12. Can Stimulus Checks Cause Inflation?
The large amounts of money needed to cover the stimulus payments have caused many to question whether or not it will cause inflation. Some are suggesting that the nation will not experience inflation in the short term, especially since consumer spending has come to a halt, and will not pick up for some time now as the fear of contracting the coronavirus hovers over our heads. But experts weigh in with the fact that with this large amount of money dedicated to the COVID-19 stimulus package, it will eventually need to be repaid in one way or another, maybe through inflation, or higher taxes at some point.
Resources for Those Seeking Additional Income Ideas During This Economic Downturn
- Read about these 20 home-based businesses that are easy to start.
- Dive into this post about how someone made $1,800,000 with their blog.
- Take a look at this post to learn how to start blogging with WordPress & Bluehost.
- Learn how to start a business so you can stop working for a paycheck.
- Get inspired with this post on how to make $1,000 quickly.
- Read all about emergency funds and how you can create one.
- Find out how you can make $2,500 in passive income working from home.
After browsing through the posts above, you feel inspired to start your own blog to create passive income, check out WordPress along with Bluehost for more details. Additionally, if you do start a home business, you will want to consider incorporating to lower your tax burden.
We Hope Our Coronavirus Stimulus Check Informational Post Has Been Helpful
With millions unemployed and many Americans struggling to keep up financially, we hope your 2020 coronavirus stimulus check brings you and your family some relief during these challenging economic times. In addition to this, be sure to stay safe, and remember, there will be a light at the end of the tunnel in the very near future.
For those of you who have been shaken by a sudden loss of income and have come to realize that you don’t want to rely on someone else for your financial stability any longer, take a look at the following video to get your thought process on the right path. It will have you thinking about generating passive income, while doing something you love, from the comfort of your home.