Congress is close to passing a $2 trillion stimulus bill to help offset the financial burdens created by coronavirus disease 2019 (COVID-19).
More specifics will be announced when this bill is signed into law.
The bill proposes to send direct payments to Americans. This article contains answers to questions you may have about those payments.
Payments are based on income (as indicated on tax forms you’ve submitted). Individuals making under $75,000 will receive $1,200. Couples making under $150,000 who joint-filed will receive $2,400. Those making $112,500 or less who filed as “head of household” will also get the full $1,200.
Families will also receive an additional $500 per child.
If you made over $75,000, you will receive less. For every $100 on income beyond $75,000, you will receive $5 less in your check. Individuals making $99,000 and couples making $198,000 won’t receive anything.
The Treasury Department said money will be sent “within three weeks” for direct deposits, which would be a little before April 18. Paper checks could take much longer to be sent out.
Where will they send the money?
The Treasury Department will use information provided from your 2019 tax return (or 2018, if you haven’t yet filed taxes this year).
The payments will be sent the same way you received your last tax refund. If that was a direct deposit, that will be the method. Otherwise, the IRS will mail a check to your last known address.
This bill only authorizes a one-time payment, but congressional leaders suggested the possibility of additional payments in another bill at a later date.
Likely not, but you can apply for it when you file your 2020 tax return. The IRS is expected to create a way to handle these situations.
Yes, provided they received Form SSA-1099 in 2019.