2020 Federal Coronavirus Relief Bill (CARES Act)
Who is eligible for the stimulus? Where do you sign up?
All working Americans (that is, those that filed their 2019 or 2018 tax return) or those on Social Security, will be considered in the CARES Act. Admittedly, not everyone will get financial support, since the amount given depends heavily on your yearly income.
The authorities will get all the information they need to send the money from your tax return. This means that you don’t need to fill out any documents or stand in a long queue. Once calculated, the sum will be transferred to you using the information provided in your tax return. If there is no information for a direct transfer, they will mail you a coronavirus stimulus check. As you might have expected, that option is bound to take longer.
Stimulus check: How much will I get?
Let’s list the main factors on which the $2 trillion coronavirus stimulus package will work:
- The more you earn, the less you get. Every American that earns $75,000 a year or less is eligible to receive $1,200. If you earn more than that, subtract $5 from that number for every additional $100 of income, up to a salary of $99,000 a year.There’s additional money for every child. A married couple or a single parent can obtain an extra $500 for every child under 17.
- The support for married couples is calculated together. This means that a couple is eligible to receive $2,400 if their total income doesn’t exceed twice the number mentioned for a single person, i.e., it is not higher than $150,000. Again, their checks will be reduced on a sliding scale if they earn between $150,000 – $198,000. Also, we still add the $500 for every child.
- In special cases, such as being a single parent, the rules are less strict. If you qualify as the “head of household,” you are eligible for $1,200 if you earn up to $112,500. Similarly to the first point, the more you exceed that number, the less you can get, but this time the cap is $136,500.
Where do I apply to get the payment?
You don’t. If you’ve included your bank account number in your recent tax return, you’ll receive a direct transfer. If not, the authorities will mail you a check.
How to claim the stimulus payment?
The payment will be transferred directly to the bank account you’ve included in your recent tax return. If you haven’t included any, you’ll get a check by mail.
How many checks will there be?
So far, there’s only one scheduled in the CARES Act. That being said, the government stated that there might be another in the future if they believe it necessary.
When can I expect the stimulus checks?
According to Treasury Secretary Steven Mnuchin, people should expect the stimulus payments to arrive within three weeks, i.e., by mid-April. Admittedly, the checks sent by mail may come a bit later than the direct transfers.
Will the payments be taxed?
No, you pay no income tax on the amount received.
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