Stimulus checks are on the way... Here's a Quick Q&A!
Have you checked your bank account yet? Your economic impact payment may already be there.
Americans who have direct deposit set up through the Internal Revenue Service could have received their payment as early as Tuesday night. Paper checks are to start going out Wednesday, according to the Treasury Department.
And if you were wondering where things stand on the payments being bumped up to $2,000? We have the answer for you along with a few more frequently asked questions...
How much will my stimulus check be?
The new round of stimulus includes $600 direct payment to individual Americans who earned up to $75,000 in 2019, or $1,200 for couples filing jointly who made up to $150,000.
That is less than the payments of $1,200 for individuals and $2,400 for couples approved in the Coronavirus Aid, Relief and Economic Security (CARES) Act in March.
This current round provides $600 per child, up from $500 in the spring.
The size of the benefit would be reduced for those earning more than $75,000, or $150,000 per married couple, similar to the last round of stimulus money. The amount will decrease by $5 for every $100 of income above those thresholds, phasing out entirely at $87,000 for individuals and $174,000 for couples.
There is no cap on the number of children a household can claim, so, for instance, a family with two adults and two children could receive up to $2,400.
How do I know if I'm getting a check?
A second round of direct payments to individuals, modeled after the Recovery Rebates sent out as part of the CARES Act, but with important changes. The direct payments would be up to $600 per individual and qualified child, with no cap on household size. Adult dependents are not eligible.
The rebate would be designed similarly to the Recovery Rebates, as they will be advanced tax credits based on 2019 income and begin to phase out in value beginning at $75,000 for single filers, $112,500 for heads of household, and $150,000 for those married filing jointly. The payments phase out entirely at $87,000 for single filers with no qualifying dependents and $174,000 for those married filing jointly with no qualifying dependents (see Chart 1).
However, not everyone qualifies for the payment. Notably, many students don't qualify. Neither do illegal immigrants who don't have a Social Security number, along with high-wage earners.
Where can I check the status?
Treasury Secretary Steve Mnuchin tweeted Tuesday that you can check your payment's status later this week at http://IRS.gov/GetMyPayment.
Will people receive a paper check or a debit card?
Just like the first round of payments under the CARES Act, most Americans will receive their payments via direct deposit. For Social Security and other beneficiaries who received the first round of payments via Direct Express, they will receive this second payment the same way.
Anyone who got the first round of payments this year but doesn't use direct deposit will generally receive a check or, in some instances, a debit card.
If you do receive a debit card in the mail, make sure it has the Visa name on the front, and the issuing bank is MetaBank on the back of the card.
What if I never got a payment?
Eligible individuals who did not receive an Economic Impact Payment this year – either the first or the second payment – will be able to claim it when they file their 2020 taxes in 2021.
Can I set up direct deposit now?
The deadline to register online for direct deposit in 2020 already passed and the tool is closed.
What if they approve $2,000 payments?
If the government does sign into law an additional boost, the Treasury said the payments "that have been issued will be topped up as quickly as possible." Meaning an additional payment with the difference would be dispatched at that time.
The White House released a statement at the same time of the signing the bill indicating they would be sending back a redlined item by item review of the colossal legislation. Demanding larger direct payments to Americans, section 230 review, and investigations into the 2020 elections.
The house passed a bill authorizing additional $2,000 payments on Monday. Tuesday the Senate introduced a Bill with additional direct payments as well as other demands by the president. We are awaiting a vote on the senate floor that seems unlikely.
If you have any additional questions feel free to reach out to us at anytime we are here to help!
Hope everyone is continuing to stay safe and healthy,