A Comprehensive Guide To Coronavirus Stimulus Package
The outbreak of Coronavirus pandemic has obstructed the operations of various industries, causing millions of Americans to lose their employment. In response to the rise in unemployment, the Senate and House have passed the Coronavirus stimulus package to help the unemployed make it through the time of crisis.
What Is a Coronavirus Stimulus Package?
The Coronavirus Stimulus package is a financial rescue measure given by the federal government to stimulate a floundering economy. The package will provide relief to the unemployed through a range of measures, including an advance tax repayment to taxpayers.
Who Is Eligible For Coronavirus Stimulus Payment?
American citizens are only eligible to receive the stimulus payment, provided they meet certain eligibility criteria. The U.S. government will check the person’s tax filing status and Adjusted Gross Income (AGI) to determine the eligibility and allotment. The U.S. residents who are eligible for payment include:
1. People who have filed a federal income tax return for 2018 or 2019 can expect to get the money.
2. Social Security recipients with income below the threshold level.
3. People with an AGI below the threshold for their filing status qualify for the payment.
4. Individuals who are receiving unemployment benefits with AGI below the determination threshold limit.
5. People with income less than $12,200 and married couples with wages less than $24,400.
6. Disabled with income less than the threshold level.
Under no circumstances, nonresidents and dependents are not eligible for the payment. However, individuals who claim extra for dependents can get an additional amount.
How is Coronavirus Stimulus Payment Calculated?
The Coronavirus Stimulus Payment is calculated based on your adjusted gross income and filing status.
- If you are a single filer with an AGI up to $75,000 a year, then you will receive payment up to $1,200.
- If you have a spouse and are filing jointly with an AGI up to $150,000 annually, you can receive money up to $2,400.
- If you are head of your household and a taxpayer with an AGI up to $112,500 a year, you will receive a stimulus payment of up to $1,200.
- If you are a taxpayer with income above the threshold level, then you will receive your payment reduced on a sliding scale.
- If you have children below the age of 17, then you will receive an additional $500 per child.
How Will You Receive Your Stimulus Payment?
The Stimulus payment will be paid to the claimants through direct deposit. But if the beneficiary doesn’t provide Internal Revenue Service (IRS) with direct deposit or has closed that account, the amount will be paid through a check with “President Donald J. Trump” printed on the memo line.
How To Track The Status Of Your Stimulus Payment?
You can track your Stimulus payment amount through the IRS’s Get My Payment page. When you visit the site and click the Get My Payment button, you will be redirected to a new page that guides you through the authorized use. Click OK on that page to redirect to the Get My Payment page.
Next, enter the individual tax ID (ITIN) or social security number (SSN), date of birth, address, and postal code and click the continue button. Now the page will show you the payment status.
The Get My Payment site page will also allow taxpayers to update their mailing information and bank account details. This is only for people who have filed a tax return in 2018 or 2019, but their payment hasn’t been sent yet. People who haven’t filed a tax return in 2018 or 2019 must file a 2019 return to receive a check.
If you were not required to file an income tax return in 2018 or 2019, then you can enter your personal and bank account information in the IRS’s online tool to receive your payment.
Is The Coronavirus Stimulus Payment Taxable?
No, Coronavirus Stimulus Payment is not subject to Federal or State income taxes. The stimulus payment can be considered as a tax credit for 2020 taxes. If your 2020 tax return is more than the credited amount, then you will receive the difference next year. If your income dips in 2020, then you will be eligible for remaining rebate credit.
If you haven’t applied for the Coronavirus Stimulus Payment yet, do it now. However, make sure you use the official sites announced to file a claim and are aware of the scammers.
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