In March 2020 the biggest stimulus package in the history of America was passed by Congress to counter the economic situation caused by the coronavirus pandemic. It was signed to become the law by the U.S. President Donald Trump. This $2.2 trillion package will provide $500 billion to the industries in distress, $350 billion to the small business loans, and $260 billion for expanding the unemployment benefits program. But all the discussion is about the $300 billion set aside for direct stimulus payments. These payouts are also called Economic Impact Payments and they have started hitting the bank accounts through direct deposits on weeks ending on 17th April and will continue through to September. However, even though many people are eager to receive the check some misconceptions and myths are going around about these payouts. Here are some.
Myth 1. Everybody is getting a check: No. Everybody is not going to get the stimulus check. There will be millions of people who will not get a dime from the largest stimulus package ever in history. Those who earn a high income (these are defined as those with AGI above $99,000 for a single person, $198,000 for a couple, and $136,500 for the head of the household) will not be eligible for the check. Those who are dependents aged 17 and older, non-citizens who will never be eligible for citizenship will not be eligible either. People owing to child support are unlikely to get any stimulus check.
Myth 2. The maximum stimulus payout is $1200 if you qualify: Maximum stimulus payout for a single person is $1200 but for a couple, filing jointly, it is $2400. For realizing the maximum payout the annual income of the taxpayer must be below $75,000 as a single person or below $112,500 for the head of the household, and $150,000 for couples who file jointly. Those making more income than this will receive lesser payouts. If they are earning more than the mentioned slab, there is no payout at all. Keep in mind that IRS is using your recent tax filing for deciding your eligibility.
Myth 3. Social security beneficiaries will not get any payment: There were some real concerns raised during the discussions about whether the coronavirus pandemic stimulus check will benefit the seniors who do not file a tax return. It turned out to be a misconception that these seniors will not get a stimulus check. IRS can use the references from the social security beneficiary’s payout record for deciding the eligibility and can direct deposit the payment in the same bank account being used for receiving the social security benefits.
Myth 4. I have to apply somewhere to receive the stimulus check: This may not be a myth 100% but the chances are that you will not be required to do anything to become eligible for the stimulus check. If you have filed the federal tax return in either 2018 or 19, it means that the IRS has all the information it needs for deciding your eligibility for the payout. However, there is a case where you have not filed a tax return because your income was lower than the standard deduction which was 12,200 in 2019 for single filers. If you belong to this category, you may be required to do some more legwork. You may visit the IRS website and provide some basic information to get the stimulus amount.
Myth 5. As I am receiving unemployment benefits I will not get a stimulus check: There is a huge disruption caused in the labor market by the coronavirus pandemic. It is unprecedented but the good news is that your unemployment benefits and the stimulus check are two different things. IRS will be concentrating on the tax years 2018 or 2019 and will not take into account whether you are presently receiving the unemployment benefits or not. If you or your family meet the eligibility criteria for the stimulus check you are going to get the Economic Impact Payment.
There are different kinds of economic emergencies created by the coronavirus pandemic across the U.S. These may lead to bankruptcy for many people. Even if you have a steady source of income the emergency medical bills related to the coronavirus treatment can pile up to thousands of dollars. For understanding the current situation better, you may get in touch with Weller Legal Group especially if you reside in the Clearwater, Lakeland, Port Richey or Tampa FL areas.
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