It's not much. But it's much better than nothing. If you're like most Americans, a $1,200 coronavirus crisis check is coming your way as part of the coronavirus stimulus package.
XTalk about a rapid change in fortunes. Rather than prepping your tax returns this time of year, you'll likely get money from the government in the form of a new $2 trillion coronavirus stimulus package. That economic stimulus bill money is meant to inject confidence and cash into American households amid the coronavirus stock market crash crisis.
The coronavirus stimulus package grant will send $1,200 to most U.S. adults. Parents will get an additional $500 for each child age 16 or younger.
The bill was signed into law Friday by President Trump.
Every little bit of money helps, whether it's from the government or squeezed out of your own budget. This other IBD report explains how to cut your household spending on everything from credit cards to mortgages and cable service.
What assistance big U.S. firms are offering customers hurt by the coronavirus stock market crash crisis.
Coronavirus Stimulus Package: Answers For Your Questions
As for the new coronavirus stimulus package, here's how its cash payments will work:
- How much? Most adults will get $1,200 each. They'll get an additional $500 for each child age 16 and under.
- How many payments? This bill calls for a single payment.
- When? Within three weeks, Treasury Secretary Steven Mnuchin says is his goal.
- Income eligibility limits? Single adults with adjusted gross income (AGI) of $75,000 or less get the full $1,200. So would married couples who filed joint returns with AGI of $150,000. The AGI cap is $112,500 for taxpayers filing as a head of household. For single filers, the payment decreases as their AGI rises, ending at $99,000. The phaseout range for married joint filers ends at $198,000.
- How can I determine the size of my payment? Many online calculators, like the one at H&R Block's website, can show you the impact of income phaseouts.
Coronavirus Crisis Cash: More F.A.Q.
- How do I find my AGI: It's on line 8B of your 2019 Form 1040 return. Your deadline for filing your 2019 form is now July 15, but you can file early.
- Which year's income matters? Your 2019 income. If you haven't filed a 2019 return, the IRS will use your 2018 return to determine your eligibility for a coronavirus stimulus package payment.
- What other requirements are there? Each recipient must have a valid Social Security number (SSN), except for some members of the military. And for an adult to be a recipient, you must not be anyone's dependent on a tax return.
- What if one spouse lacks an SSN? If one spouse has an individual taxpayer identification number (ITIN) instead of an SSN, the couple won't get a check.
- Are there any exceptions to that rule? Yes. First, an adopted child can have an adoption taxpayer identification number (ATIN) instead of an SSN. Second, if you are a married member of the U.S. armed forces, only you or your spouse needs to have an SSN.
Who Else Gets A Payment?
- How do I apply? No need to. If the IRS already has your bank account information, you'll get a direct deposit. The IRS will use bank account data for some Social Security recipients.
- Will Social Security recipients get payments? Yes.
- Will the payment be taxable? No. Technically, the coronavirus stimulus package payment will be treated as a tax credit for the 2020 tax year. It will not be included in your taxable income.
- Which military service members are eligible? Active duty personnel who are income-eligible will receive payment. So will a veteran who receives money from the Department of Veterans Affairs for disability benefits, pensions and survivors' benefits, as long as he or she is not someone else's dependent, according to militarybenefits.info.
This report, first published on March 27, has been updated.
Follow Paul Katzeff on Twitter at @IBD_PKatzeff for tips about personal finance and strategies of the best mutual funds.
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