03/30/2020
Ok heres a summary...
Stimulus Payments – What You Need to Know about the CARES Act.
Here is how the payments will work.
**Disclaimer:This is based on what is known now, and the IRS will work out the mechanics of delivery.**
Who gets a payment:
1. U.S. residents are eligible for a stimulus payment.
2. Recipients can’t be a dependent of another person and receive a stimulus payment
3. Recipients need to have a social security number and authorization to work in the United States.
How much will I get:
1. For individuals with income up to $75,000, you are eligible for a rebate of $1,200.
2. For individuals, the payment reduces ratably down from $1,200 to $0 with incomes between $75,000 and $99,000.
3. Individuals with income exceeding $99,000, are not eligible for a stimulus payment.
4. For married couples with income up to $150,000, you are eligible for a $2,400 rebate.
5. For married couples, the payment reduces ratably down from $2,400 to $0 between incomes of $150,000 and $198,000.
6. Married couples with income over $198,000 are not eligible for stimulus payments.
7. For those filing head of household, the payment is ratable reduced to $0 at $146,500 of income.
8. If you have dependents, you are eligible for an additional $500 per child.
9. If you have no income or your income comes from SSI or non-taxable sources, you are still eligible for the rebate. If you were not required to file a tax return, the payment will be automatic.
10. The IRS will use your 2019 tax return information. (if you have filed).
👉🏼NOTE: If you have significantly lower income for 2019 and have not filed, it would be a good idea to get 2019 filed.
11. Alternatively, the IRS will use your 2018 tax return information, if you have not yet filed for 2019
12. It is not clear what the cutoff date is for the 2019 return to be filed and affect the payment calculation.
Is the payment taxable?
No. The check you receive is really just an advanced payment of a tax credit for the 2020 tax year. As such, it won't be included in your taxable income.
Our office will take calls to help people understand the stimulus and help small business navigate through the process.
#TaxInkTaxPros
Ok heres a summary...
Stimulus Payments – What You Need to Know about the CARES Act.
Here is how the payments will work.
**Disclaimer:This is based on what is known now, and the IRS will work out the mechanics of delivery.**
Who gets a payment:
1. U.S. residents are eligible for a stimulus payment.
2. Recipients can’t be a dependent of another person and receive a stimulus payment
3. Recipients need to have a social security number and authorization to work in the United States.
How much will I get:
1. For individuals with income up to $75,000, you are eligible for a rebate of $1,200.
2. For individuals, the payment reduces ratably down from $1,200 to $0 with incomes between $75,000 and $99,000.
3. Individuals with income exceeding $99,000, are not eligible for a stimulus payment.
4. For married couples with income up to $150,000, you are eligible for a $2,400 rebate.
5. For married couples, the payment reduces ratably down from $2,400 to $0 between incomes of $150,000 and $198,000.
6. Married couples with income over $198,000 are not eligible for stimulus payments.
7. For those filing head of household, the payment is ratable reduced to $0 at $146,500 of income.
8. If you have dependents, you are eligible for an additional $500 per child.
9. If you have no income or your income comes from SSI or non-taxable sources, you are still eligible for the rebate. If you were not required to file a tax return, the payment will be automatic.
10. The IRS will use your 2019 tax return information. (if you have filed).
👉🏼NOTE: If you have significantly lower income for 2019 and have not filed, it would be a good idea to get 2019 filed.
11. Alternatively, the IRS will use your 2018 tax return information, if you have not yet filed for 2019
12. It is not clear what the cutoff date is for the 2019 return to be filed and affect the payment calculation.
Is the payment taxable?
No. The check you receive is really just an advanced payment of a tax credit for the 2020 tax year. As such, it won't be included in your taxable income.
Our office will take calls to help people understand the stimulus and help small business navigate through the process.
#TaxInkTaxPros