The government wants to provide Americans-in-need some cash. Included within the
Coronavirus Aid, Relief, and Economic Security (CARES) Act
is a rebate program to send money directly to qualified citizens. The plan is for the IRS to start sending these funds within three weeks.
Who Gets a Check?
Individuals earning less than $75k per year will receive $1,200, and a reduced amount will apply for individuals earning up to $99k per year.
Married couples can earn $2,400 per year if their combined income is less than $150k per year with a reduced amount for married couples earning up to $198k per year. Married couples will also receive an additional $500 per child.
For single parents (and others who file as "head of household”), the $1,200 payment will be paid up to $112,500 per year and a reduced amount up to $136,500 per year.
They also will receive $500 per child.
Anyone earning more than these amounts will not be eligible for these recovery payments.
Here’s an example:
I am married with 3 kids. My wife and I earned $135,000 total in 2019. We will receive $2400 plus an additional $500 for each of our three kids totaling $3,900.
Calculate what you’ll get:
How will my income be calculated?
The amount to be paid is technically based on a person’s 2020 income. Since no one knows their total 2020 income yet, the government is using tax returns from 2019 and 2018 to figure out who qualifies for a check and for how much.
How Do I Apply?
There is no action needed. If you pay your taxes by direct deposit you should simply receive a direct deposit of the funds by the IRS. If the IRS does not have your direct deposit information you should receive a check, which will probably take longer.
If you have yet to file a 2019 tax return, the IRS will see if you have filed a 2018 tax return and use that information to determine whether you meet the qualifications for a check and to find your bank details or mailing address.
What about people on Social Security?
People on Social Security are eligible to receive the coronavirus relief payment as long as their total income does not exceed the limit.
Will there be another payment in the summer?
Maybe. President Trump has said he is open to another round of the checks, but only if the economy remains anemic through the spring and an additional boost is warranted.
Are the checks taxable?
No, they are not taxable.