The United States Senate passed a stimulus package that will provide support for American households and businesses. Part of the package involves sending Americans a one-time check or direct deposit with the amount dependent on their income. Read on to find out how much you’ll receive, when to expect it and what you can do to ensure you get the money.
How much will you receive?
If you made less than $75,000 in 2019, you will receive $1,200. If you filed your tax return jointly and as a couple you made less than $150,000, you’ll receive $2,400. If you filed as “head of household” and made less than $112,500, you’ll receive $1,200.
If you made more than $75,000 in 2019, the payment will decrease by $5 for every $100 of income exceeding the $75,000 limit. There is no payment for individuals that made $99,000 or more or a couple that made $198,000 or more.
You’ll receive $500 for every child in your household. For a family of four, the maximum payment is $3,400.
What do you need to do to receive it?
File your federal income taxes with the IRS. The payment is based on your “adjusted gross income” on your tax return. If you haven’t filed for 2019 yet, the government will base their calculation of your payment based on your 2018 tax return. You are eligible to receive a payment if you have a social security number and if you have been working and paying taxes since 2018.
There are several ways to file your federal income taxes online for free. Read this article, How To File Your Federal Income Taxes For Free, to find out if you qualify and which website you can use.
How and when will you receive the money?
Payments will be sent out via direct deposit if you set that up when filing your 2018 or 2019 tax returns. People who do not have direct deposit set up with the IRS will receive the checks by mail to their “last known address.” It will take longer to receive your payment via mail. You should notify the IRS of your current mailing address if you recently moved. If you haven’t filed your 2019 tax return yet, it's recommended to set up direct deposit. This way you won’t have to wait as long to receive the payment and it will go directly into your bank account.
The Treasury Secretary expects direct deposits to be sent within 3 weeks of the bill being signed into law, which occurred on Friday, March 27.
These payments will help out Americans who are sick, have been laid off or furloughed get through these uncertain times due to the Coronavirus pandemic. For some people it will put food on the table for their family and help them pay their bills so they don’t have to worry about their water or electricity being turned off. If you have been affected financially by Coronavirus, you should learn how to live with less income.
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