The
Coronavirus Aid, Relief, and Economic Security Act (CARES) that was signed into
law by President Trump on March 27th included “economic impact payments”. These
are stimulus payments made directly to individuals. Here is what you need to
know:

How
Much:

Single
adults (with an adjusted gross income of $75,000 (or less) will get a one-time
payment of $1,200. For every qualifying child age 16 or under, the payment will
be an additional $500. The amount depends on income. Married couples, with no
children earning $150,000 or less, will receive a total of $2,400. Taxpayers
filing as head of household will get the full amount if they earned $112,500 or
less. 

Those
making above the previously listed amount will receive a decreased payment.
Single persons making $99,000 or married persons with no children earning
$198,000 will not receive anything. The Senate Financial Committee states that
a family with two children will no longer be eligible for payment if its income
surpasses $218,000.

Who
Does Not Qualify?

If
you are claimed as a dependent, even if you are an adult with a valid Social
Security number, you will not qualify. This will affect mostly college
students, who were claimed as a tax dependent on their parent’s tax return.
Typically, students under 24 are dependents, if their parent pays at least half
of their expenses.  There is an exception for members of the military.

If
a person is ineligible due to previous income but anticipates a loss of income
in 2020, they still will not receive a payment. An individual in this situation
may benefit once they file their 2020 taxes, as the payment is technically an
advance on tax credit. This individual could also benefit from other provisions
of the legislation such as the ability to file for unemployment, or for one of
the new small business or sole proprietor loans. 

How:

You
should look at your 2019 tax return to determine if you qualify. If you have
not filed yet, you can use your 2018 return.  You can also use a 2019 Social
Security statement showing your income to see what an employer reported to the
I.R.S. 

You
do not need to apply to receive a payment. The Internal Revenue Service will
already have your bank account information from your 2019 or 2018 returns. It
will transfer the money to you via direct deposit based on the recent
income-tax figures it already has.