$2 Trillion Stimulus Package Explained
Will You Get A ‘Coronavirus Check’?
Kristin Myers Yahoo Finance March 27, 2020
Congress has passed a $2.2 trillion coronavirus stimulus package to help Americans affected by the coronavirus pandemic. The bill includes direct cash assistance, additional unemployment funds, and tax credits to employers. Called the CARES Act, the 880-page long legislation represented a rare moment of bipartisanship; it passed unanimously in the Senate.
The most well-known piece of the bill — stimulus checks — is available only to eligible Americans, based on tax returns. If you have already filed your 2019 tax returns, the Internal Revenue Service (IRS) will utilize those. If you haven’t, any coronavirus assistance will be based on your 2018 returns.
If you didn’t file either year because your taxable income is low enough not to necessitate a filing, don’t worry. The IRS will still be able to calculate your benefit; what’s more, Americans on the low end of the income scale will receive the full benefit.
Your eligibility is based on your adjusted gross income or AGI. Your AGI is the total amount of taxable income before deductions and personal exemptions. Taxable income includes salary, tips, capital gains, and income from dividends or interest.
So if you are calculating how much you might receive, don’t forget to include any bonuses or money made from the sale of stocks (among others). Employer payments of student loans for their workers will now be excluded from taxable income.
What Are The Benefits?
Congress has authorized a maximum of $1,200 for each American, and up to $2,400 for those who file their taxes jointly. Taxpayers with children also receive a flat $500 per child. If you share children with someone but you do not file jointly, the money goes to the person who claims them as a dependent.
What Are The Eligibility Requirements?
To receive the maximum benefit, an individual filer without children must earn $75,000 or less. Joint taxpayers without children can receive the full amount if they earn less than $150,000. Heads of household can earn up to $112,500. After this, the benefit is reduced.
What If I Earn More?
Those who earn more than $75,000 won’t be excluded but the amount of assistance is reduced until an earner hits the cap.
Individual filers without children who earn over $99,000 will no longer be eligible.
Joint filers without children can earn up to $198,000 before they no longer qualify.
What If I Have Children?
The income threshold to qualify for a stimulus benefit is higher when you have children; and with each child the income threshold rises. For example, married couples with two children, filing jointly, can earn up to $218,000 before they’re no longer eligible for a benefit.
Remember, heads of household, or those who file with dependents, can earn up to $112,500 to receive the maximum benefit ($1,200), plus an additional $500 for each child they claim.
What If I Earn Less This Year Than I Earned Previously?
If your previous tax filings make you ineligible but you would be eligible for assistance based on what you earn in 2020, unfortunately you won’t be able receive a stimulus check… immediately. But the funds will be available to you when you file your 2020 taxes. Why’s that? That’s because the money received is a tax credit for the year 2020. If you are eligible for unemployment, the bill will allow for increased unemployment benefits.
How Quickly Will I Get My Money?