Stimulus Check Eligibility: How to Apply, Calculate How Much Money You Should Get
The IRS has started sending out stimulus payments to millions of eligible Americans to help fend off the economic downturn amid the coronavirus outbreak.
As part of the Coronavirus Aid Relief and Economic Security (CARES) Act, eligible taxpayers who are not listed as a dependent will receive a payment of up to $1,200.
The amount each person will receive depends on their adjusted gross income (AGI), as well as their household situation.
An individual filer or head of household can receive up to $1,200, with married couples receiving up to $2,400. The amount people will receive lessens depending on their AGI. For a single filer, they will receive the maximum $1,200 if their AGI is less than $75,000.
After that, the amount they receive will go down by $5 for every $100 they earned over the $75,000 threshold up until $99,000.
For instance, a single filer whose AGI is $80,000 will receive a stimulus payment of $950, and someone who earned $85,000 would earn $700, and so on. Single filers who earned more than $99,000 are not eligible for the stimulus payment.
For a head of household filer, they will receive $1,200 if their income was less than $112,500 and will receive $5 for every $100 of income, before expiring at $136,500.
Married couples will get the $2,400 if their combined AGI is less than $150,000. The payments will then lessen by $5 for every $100 up until $198,000.
Families can also receive an additional $500 per child under the age of 17. For instance, a couple earning less than $150,000 who have two children will receive $3,400.
To work out exactly how much you will be getting, sites such as Turbotax and Smart Asset have calculators that only require some basic details.
For a majority of eligible Americans, they do not need to do anything to apply for the payment as the government will work out your earnings based on your 2019 tax return. If you have not filled in your 2019 tax return, the IRS will use your 2018 one instead.
The IRS also launched an online tool to assist those who do not normally have to file tax returns such as senior citizens, Social Security recipients and those who earn less than $12,000, so their details can still be registered to receive the payment.
Treasury Secretary Steven Mnuchin estimated more than 80 million people will have already received their payments by Wednesday, April 16.
The rest, such as those who did not set up a direct deposit with the IRS, will have to wait longer for their check to arrive in the mail.
The IRS launched a separate app for those who filed their tax return in 2018 or 2019, but did not approve direct deposit, so they can receive payments immediately, as opposed to getting a check sent in the mail. The free "Get My Payment" app will also allow taxpayers to track the status of their payment.
"We are pleased that many Americans are receiving their Economic Impact Payments," Mnuchin said. "This administration is delivering fast and direct economic assistance to hardworking Americans, and we hope these payments will bring them much-needed relief."
