2020 Stimulus Check
Along with all of the other uncertainties we’re facing, most of us can add the 2020 stimulus check our list of questions. Since the economic crisis, the US government has passed a stimulus plan that involves mailing checks to those who have been effected most.
This seems like a great plan. However, it’s generated a lot of confusion and many questions about when, how much, and to whom money is sent. I’ve done a lot of research on this, and I’ve broken it down in the simplest way I could below.
How much money do I get?
This is everyones biggest question – and for good reason! Rumors are circulating that a check for $1,200 will be sent to everyone.
While $1,200 is the base amount for each stimulus check, the amount is dependent on a few factors.
Anyone filing taxes as single, married and filing separately or a qualifying widower who’s adjusted gross income (AGI) is less than $75,000, will receive a check for $1,200. If these individuals have an AGI greater than $75,000 the stimulus check gradually reduces to $0.
Anyone filing married or jointly who’s AGI is under $150,000 will receive a check for $1,200 each. So a married couple making less than $150,000 will receive $2,400. However, if the couple has an AGI greater than $150,000 or if they are filing with a head of household who’s AGI is over $112,500, the amount of the check gradually reduces to $0.
In addition to income based amounts, any individuals who filed with children under 16 qualify for $500 per child.
If you’re head is spinning – you can use this calculator!
What if I haven’t filed my 2019 taxes yet? Do I still get a check?
Yes! If you haven’t filed your 2019 taxes by the time the stimulus checks are being sent, your 2018 taxes will be used.
Make sure to check calculate your qualifications for both! If your 2019 taxes will lead to a higher stimulus check for you, file them as soon as you can!
When will I get the stimulus check?
This is a tricky question to answer. There are a lot of varying reports!
President Trump says he’d like to start sending checks within the next few weeks, and the bill states the IRS should send payments rapidly.
That being said, there is a lot going on right now and like most businesses, the IRS is understaffed and running slowly. In the past, it’s taken a few months to get stimulus checks sent out.
The good news is that the IRS now performs direct deposits, so they already have banking information for millions of Americans which could speak this process up.
Will I get taxed on this money?
The way that this stimulus package has been set up is to essentially send prepayment for a 2020 tax credit, which means it will not count towards your income for 2020.
Will I get a stimulus check if I’m a young adult still living with my parents?
Yes! As long as you are filing taxes and meet the criteria, you qualify for a check.
Do I need to have a Social Security number to qualify for a check?
Yes, individuals who do not have a social security number do not qualify for stimulus checks, including spouses and/or children.
There are two exceptions to this rule:
A child who is adopted that has a ETIN or a spouse of military personell.
If I owe back taxes, will that be taken out of my check?
Historically this has not happened. Stimulus checks are typically not withheld due to back taxes.
What if my check never arrives?
The IRS will send you payment via direct deposit using the information they have from your last tax filing, or send a paper check to the last known address. Within 15 days of sending payment, you will also receive a confirmation by mail that the payment has been sent. This confirmation will contain information on what to do if you did not receive payment.
Who won’t get a check?
This is an alarmingly large group of people.
Low-income individuals who make less than $12,200 per year are not required to file for taxes, but this also may mean that they will miss their stimulus check. These individuals do qualify for the stimulus check, but the IRS does not have access to their information, making distribution of a check more difficult.
However, these individuals can still file taxes to qualify!
Individuals between older than 17 but still claimed as a dependent will miss out entirely. They will not qualify for their own stimulus check, but they are also too old for their parents to receive a $500 credit with their check.
In addition, individuals who’s income is above a specific threshold (based on filing status), will not qualify for any stimulus check.
How should I use my stimulus check?
This is my favorite question! I’ve outlined a few options on how I would spend my check right here.
I know how crazy times are for all of us right now, hopefully this breakdown brought you some clarity!
For more articles like this one, check out my blogs. For more ideas on how to spend your stimulus check and other ways to save money on awesome products, check out all of my deals! As always, sign up for my email list so you can be the first to know when I post a new blog or find a new deal!
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