All Your Coronavirus Relief Security Questions Answered
When the Senate passed a giant coronavirus economic aid bill that includes checks worth up to $ 1,200 for many Americans, many people reacted like it was a deal. But even though the House of Representatives approved it today, the law has yet to be passed , and it may be some time before you receive your rebate check. So it’s not time to celebrate like it’s payday yet.
Not sure if you can receive payment? Worried about your taxes being affected? Let’s answer some of your most common questions about your highly anticipated coronavirus aid checks.
Where is my check?
There are no checks near your inbox yet, so be patient.
The president needs to sign the bailout law before the IRS can start processing payments.
If you have a bank account linked to your last tax return because you received a refund or paid the amount due by direct transfer, you will be the first in line to receive your payment. It is estimated that after the signing of the bill, it will take about a month.
If you do not have a bank account linked to your tax return, you will receive a paper check in the mail. You will most likely receive your payment at least in May. But your check may come a long way before summer .
A summary of how much money you will get:
- If your Adjusted Gross Income (AGI) was less than $ 75,000 on your last tax return, you will receive $ 1,200.
- If you submitted a joint application and your AGI is less than $ 150,000, you will receive $ 2,400.
- If you applied as head of household and have an AGI of less than $ 112,500, you will receive $ 1,200.
- For every dependent aged 16 and under in your household, you will receive $ 500. If you have adult dependents or college students, you will not get paid for them.
- If your last AGI was between $ 75,000 and $ 99,000, you will receive less than $ 1,200, but still get paid. The same can be said for joint applicants with AGIs between $ 150,000 and $ 198,000 and heads of households with AGIs between $ 112,500 and $ 146,500 – you get less than full pay, but you get something. You can use a reverse relief calculator like this one to find out how much.
- If you have an AGI over $ 99,000 (single people), $ 198,000 (joint applicants), or $ 146,500 (head of household), you won’t get anything.
To check your AGI, look at line 8b in the 2019 form 1040 or line 7 in the 2018 form 1040.
I have moved since I filed my last tax return. How do I get my money?
Within 15 days of making your payment, you will receive a letter from the IRS at your last known address, telling you the amount of the payment and where it was delivered. It will also contain IRS contact information if you have not received your payment.
Of course, if you move, you may not receive this letter. The IRS is likely to publish additional information for people who need to update their address on the IRS. Check this IRS link for more information when it becomes available.
What if I haven’t filed my tax return?
The IRS will calculate your payment based on your most recent tax return (2018 or 2019). If you didn’t apply, you won’t receive any money. “It’s important to register one of these years, if you haven’t already done so,” said Mike Savage, founder and CEO of 1-800Accountant .
What if I am in social security? What if I am not working due to a disability?
If you receive government benefits such as Social Security, these records will be used to pay your payment.
My AGI on my last tax return was too high to be compensated, but now my income is lower due to the coronavirus. Will I receive money?
You won’t get the money now. “So far, assistance in this scenario is to apply for unemployment papers with extended benefits,” Savage said. However, upon filing your 2020 tax return, you will receive the remaining credit, which may lead to a refund.
My AGI on my last tax return means I will get a check, but my income has increased since then. Will I need to get this money back?
No. Your check is an advance refundable tax credit – basically the government gives you a tax credit in cash. If you don’t get your check (or maximum pay), but your income drops in 2020, you may find yourself getting a larger refund next year. But if your income increases in 2020, you wo n’t get your money back .
I haven’t filed my 2019 tax return yet. Do I have to wait until I receive my check?
Savage said not to wait, especially if you are expecting a refund.
The only exception to this rule may be if your income has fluctuated since your last filing. If your 2019 tax return leads you to exceed the income threshold, while your already filed 2018 return retains your eligibility, you may want to wait.
Will this affect my 2019 tax refund? What if I have already filed my 2019 tax return but my refund is still being processed?
“This check will be added to your 2019 refund if you receive it,” Savage said.
Will I have to pay taxes on my check? How will this affect my 2020 tax return?
Your return check is tax deductible. You will report it on taxes for 2020, but it will not increase your tax liability for the year.
Will they withhold the discount if I have to pay taxes?
No. You will still receive a check if you have federal or state tax arrears.
My child was born in 2020. Will I get paid for it?
Not this year. You will see a $ 500 credit for your new dependent on your 2020 tax return.