Everything You Need to Know About Trump's Stimulus Check Program
Last week, the United States House and Senate passed a $2 trillion stimulus relief package to help American businesses and individuals get through the coronavirus pandemic. While this relief package aims to send checks directly to Americans, there’s a little more to it than simply receiving a check in the mail.
Seeing as the stimulus package was just passed, there’s a lot of confusion surrounding the specifics. How much money will you receive? When will you receive it? Do you have to pay taxes on the stimulus check you receive in 2020? These are all valid questions. And, we’re here to help you make sense of the answers.
What is the Stimulus Check Program?
Stimulus relief packages are nothing new. The US government previously passed similar relief packages in 2001 and in 2008 as the economy fell into a recession. This is by far the largest stimulus package the government has passed, however.
At $2 trillion, it is the largest emergency aid package in US history. And, that makes sense seeing as the United Nations Secretary-General Antonio Guterres has just released statements saying that this is the worst crisis the world has seen since World War II.
Who Qualifies for a Stimulus Check?
To qualify for a stimulus check, you’ll have to be a legal US resident who is not claimed (or eligible to be claimed) as a dependent on someone else’s tax return. Individuals who filed their 2018 tax returns or who have already filed their 2019 returns will qualify to receive this one-time check.
If you haven’t done your taxes for 2018 or 2019, the IRS is urging you to do so now. This includes workers who didn’t meet the income minimum and therefore weren’t required to file taxes. Regardless of your status, it’s advised to go ahead and file your previous years’ taxes now.
How Much Will I Receive in My Stimulus Check?
The amount of money you’ll receive in your stimulus check depends on how you filed your taxes and how much money you made last year or the year before. In short, individuals are eligible to receive up to $1,200. For families, the amount is up to $2,400.
To qualify, you have to have reported an adjusted gross income of less than $75,000. Workers who made more than $75,000 in the recent tax years will have the amount of their stimulus check reduced by $5 for every additional $100 of adjusted gross income. Those who made more than $99,000 won’t receive a check.
For families with children, you are eligible to receive an additional $500 for each child under the age of 17.
How & When Will I Receive the Stimulus Check?
This week, the IRS has said that checks will start to go out immediately. You don’t have to do anything special to receive a stimulus check if you know you are eligible for one. The IRS said that payments will go out automatically to those who authorized a direct deposit for their refunds on either their 2019 or 2018 tax return.
This means that if you authorized the payment in previous years, they will send the check straight to the bank account you used to receive tax refunds. CNN notes that about 92 million people received refunds via direct deposit, so there’s a good chance you’re one of them. The IRS and the government have put a loose timeframe of three weeks in regards to when you can expect to receive your check.
What About Changes in Income for 2020?
If you made too much in 2018 or 2019 to qualify for the stimulus check, you’ll want to re-evaluate your taxes the following year to later qualify for the check (which is, at its core, a tax credit).
This means that if you made over $99,000 in 2019 but will see huge losses in revenue in 2020, then when you go to file your taxes next year, you’ll still be eligible for the payments. As of right now, it doesn’t look like you will have to pay any money back if you end up reporting earnings over $99,000 for the 2020 fiscal year.
Saving Your Stimulus Check
As a company operating within the financial industry, we here at Cheese are constantly monitoring all updates that might affect our customers and their families. The stimulus check is a short-term solution to economic problems that many Americans will face in the coming weeks.
This, however, doesn’t mean you should stop saving and learning how to save. Safeguard yourself against the future economic downfalls the country might face and put your money into an account that will help you earn interest to grow your savings.
Yes, we’re talking about Cheese. With cashback and saving bonus, you’ll be able to save more money in a way that’ll help you stretch your stimulus check until long-term solutions are put into place. Interested? All you have to do is sign up for the debit card and begin to reap the financial benefits that our FDIC-insured 100% free debit card offers you.