As part of the recent $2 trillion stimulus package passed by Congress, most people will receive a check or direct deposit in the coming weeks and months. But how much will you get?
The answer, in multiple respects, is “it depends.”
First, it depends on your filing status: if you’re single, the payment is $1,200, but it doubles for a married couple filing jointly to $2,400.
It also depends on your family size; you’ll get an additional $500 for every child under the age of 17.
In addition, if you are claimed as a dependent on someone else’s tax return, you are not entitled to any payment at all.
And for high-income taxpayers, it depends on just how high your income goes; a married couple will start to lose the payment once adjusted gross income (AGI) — think, all of your income less only a few deductions — exceeds $150,000, and the same will occur for a single taxpayer once AGI exceeds $75,000.
Your payment also depends on whether or not you have filed your 2019 tax return. According to the new law, the IRS is going to look first to your 2019 tax return to compute the payment. If no 2019 return has been filed, however, the IRS will grab your 2018 return instead. (If you receive Social Security and don’t need to file a return, the IRS will send you a payment based on your Form 1099-SSA).
The stimulus payment is intended to be an advance payment against an actual credit you will compute on your 2020 tax return. It is unclear as to whether you will have to “pay back” any excess credit once the calculation is done when filing your 2020 tax returns. .
The Stimulus bill still has a few hurdles left before it becomes law.
We will continue to update you and as always please call with any questions.