Saturday, March 28, 2020

Details of COVID-19 Payouts to Individuals: This is What You Are Going to Get



Better get your piece of the newly printed money the government is going to pass out to keep up, at least a bit, with the price inflation it is going to cause.

Overview
The Coronavirus Aid, Relief, and Economic Security (CARES) Act directs the Department of the Treasury to make a one-time direct payment to individuals to help them recover from the economic impact of the COVID-19 pandemic.  The federal government will send you a payment if (1) you meet the eligibility criteria; (2) you fall within the income cap; and (3) you have filed a tax return or you already receive Social Security benefits.  If you filed a tax return in 2018 or 2019 or you receive Social Security benefits, you do not need to apply for this benefit.  If you do not fit into those categories, you can file a tax return for free to receive your payment.
Eligibility
  • Anyone other than a nonresident alien, a dependent, or an estate, is eligible.
  • You must have a Social Security number for you, your spouse, and any child you are claiming.  There is an exception for spouses of active duty military members.
Amount of payment
  • Individuals receive $1,200 (joint filers receive $2,400) plus $500 per child under 17 years old.
  • Benefits start to phase out for those with incomes exceeding $150,000 for married couples, $75,000 for singles, and $112,500 for single parents.
  • With the phase-out, payments will not go to single filers earning more than $99,000; head-of-household filers with one child, more than $146,500; and more than $198,000 for joint filers with no children.
  • Your income is based on your 2019 tax return; if you did not file taxes in 2019, the Treasury will use your 2018 tax return.
  • If you did not file a tax return in those years, the Treasury can use your Social Security benefit information or you will have to file a tax return. 
How will it be paid?
  • If you filed a tax return in 2018 or 2019, or you receive Social Security benefits, you will receive the rebate automatically.
  • If you provided bank account information to receive your tax refund as a direct deposit, you will receive your rebate that way.
  • If you did not provide information for direct deposit, you will be mailed a rebate check to the address provided on your 2018 or 2019 tax return, whichever you filed most recently.
  • If you did not file in 2018 or 2019, but you receive Social Security benefits, you will receive the rebate the same way you receive your Social Security benefit.
  • After the payment is made, you will receive a notification in the mail from Treasury within 15 days.
  • If you do not fit within one of these categories you can file a tax return now to receive your payment (to file a return for free, go to www.irs.gov).
When will the payments be made?
  • Payments will be made as fast as possible but could still take a month or longer
(via Senator Brian Schatz (Hawaii) 
      
-RW



3 comments:

  1. Check out the sba free money/loan language in the bill...!!

    ReplyDelete
  2. The Townsend Plan on steroids:

    https://www.ssa.gov/history/towns5.html
    https://en.wikipedia.org/wiki/Francis_Townsend

    ReplyDelete
  3. All I want to know is if these checks are considered taxable income for filing tax returns next year. This will have huge implications if it counts according to the irs tax table because if you have to count it it could bump people into higher tax brackets, etc.

    ReplyDelete