$2.2 TRILLION CORONAVIRUS STIMULUS PACKAGE – WHO AND WHEN YOU SHOULD EXPECT YOUR DIRECT PAYMENT CHECK
Single adults with adjusted gross income up to $75,000 will get a $1,200 payment.
Married couples with adjusted gross income up to $150,000 will get $2,400.
Single parents who file as head of household with adjusted gross income up to $112,500 will get the full $1,200 check.
Additionally, Americans with dependent children under the age of 17 will get an additional $500 per child.
Reduced checks will be available for single adults with adjusted gross income between $75,001 and $99,000, and married couples with adjusted gross income between $150,001 and $198,000.
The check will be reduced $5 for every $100 over $75,00 for single adults and $150,000 for married couples.
Single adults with adjusted gross income over $99,000 and married couples with adjusted gross income over $198,000 won’t receive stimulus checks.
Those without a social security number and nonresident aliens – those who aren’t a U.S. citizen or U.S. national and don’t have a green card or have not passed the substantial presence test – aren’t eligible. You’re also ineligible if your parents claim you as a dependent on their tax return.
Treasury Secretary Steven Mnuchin stated that the White House wants the payments distributed by April 6th. The checks will be directly deposited into your bank account if you received your last income tax refund or expect to receive this year’s refund that way. If not, checks will be mailed, which could take longer to get to Americans. Reports suggested that mailed checks could take up to four months to get to recipients.
If your 2018 adjusted gross income was higher than $99,000, if single, or $198,000, if married, but you expect your 2019 adjusted gross income to be lower than those amounts, and if you haven’t already filed your 2019 individual income tax returns, please click on the link below to schedule a zoom call to discuss what we need to do to finalize your 2019 income tax return so we can get it filed as quickly as possible. If, on the other hand, your 2018 adjusted gross income was lower than $99,000, if single, or $198,000, if married, and you expect your 2019 adjusted gross income to be higher than those amounts, then we will want to delay filing your 2019 income tax returns until after you receive your stimulus check. The good news is that you will not have to pay back the stimulus check when you later file your 2019 tax return even though your 2019 adjusted gross income was above the threshold amounts.
If you haven’t already done so, we invite you to schedule a zoom call to discuss this and the many other parts of the Stimulus Package, including the new SBA partially forgivable loan program, and how they might impact and/or benefit you. Please click on this link to schedule a convenient date and time:
The team at Provident are committed to helping our clients manage through this turbulent and uncertain economic crisis. Our hearts and prayers go out to each of you and hope that you remain safe and healthy. As always, if there is anything we can do, please do not hesitate to let us know.