The Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law on March 27th, 2020. This relief package provides over $2 trillion in economic assistance for American workers, families, students, and small businesses.
A major component of the CARES relief package is the disbursement of Economic Impact Payments to American individuals and families. Payments of up to $1,200 are provided for eligible adults ($2,400 for joint filers), with an additional $500 for each dependent under 17 years old. For individuals with incomes surpassing $75,000 ($150,000 for joint filers), payment amounts will be reduced incrementally. Individuals without children whose income exceeds $99,000 ($198,000 for joint filers) will not receive any stimulus payment. A family of four will not receive a payment if their income exceeds $218,000.
The IRS has already begun sending out stimulus payments. Additional rounds of payments will be disbursed in the coming weeks. If you filed a tax return for 2019 or 2018, no further steps are required to receive your economic impact payment.
I am a college student. Will I receive a stimulus payment?
Probably not. If you are 17 to 24 years of age and can be claimed as a dependent by someone else (such as a parent), you are not eligible to receive an economic impact payment, even if your parent does not actually claim you on their tax return.
I claimed an adult dependent on my tax return. Will I receive an additional $500?
No. An additional $500 is only available to taxpayers who claim a dependent under 17 years old. This means that if you claim a college student, elderly or disabled family member, or other adult dependent on your tax return, you will not be receiving any additional amount with your stimulus payment.
I am not usually required to file a tax return. Will I still be able to receive a stimulus payment?
Even if you aren’t normally required to file a tax return, you may still be able to receive a payment as long as you are a U.S. citizen or permanent resident and your 2019 gross income did not exceed $12,200 ($24,400 for married couples). In order to receive your stimulus payment, be sure to provide your information to the IRS using the online Non-Filers: Enter Payment Info tool.
If you received Social Security, SSI, or Railroad Retirement benefits in 2019, you are not required to file a tax return and will automatically receive your $1,200 payment by either check or direct deposit, depending on how you normally receive your federal benefits. No additional action is required.
Is my stimulus payment considered taxable income? Will I have to pay it back?
Your stimulus payment is yours to keep; you will not be required to repay it.
Because the payment is not considered taxable income, you will not be required to pay taxes on it with your 2020 return. In fact, you may receive an additional credit with your 2020 tax return if you experience a loss in income or an increase in family size this year.
How can I receive my stimulus payment via direct deposit?
Payments will be disbursed via direct deposit or by paper check. If you have already provided the IRS with your banking information, you do not need to take any additional steps to receive your stimulus payment directly. If the IRS does not yet have your banking information but you would like to receive your payment by direct deposit, you can provide your information online using the IRS’s Get My Payment tool. Otherwise, you will receive a paper check by mail.
How can I check the status of my stimulus payment?
Visit the IRS’s online Get My Payment tool to check on your payment status, payment type, and whether any additional information is required from you.
Given the fluid nature of current events, we will be regularly updating our website with relevant information regarding COVID-19 relief efforts and their implications for our firm and our community. Learn more about how COVID-19 will impact your financial situation at our webpage dedicated to COVID-19 updates.
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