Your phones are probably ringing with taxpayers wanting to know about their stimulus checks. The below article is not intended to address all potential scenarios but to hit on the stimulus check highlights regarding the questions we are being asked.
What is it?
In simple terms – The Stimulus check is a one-time nontaxable payment sent to all legal residents who are not claimed (or eligible to be claimed) as a dependent on someone else’s tax return and don’t make too much money based on your most recent filed tax return (2018 or 2019).
Who gets what? Things to know…
Stimulus payments will be phased out for certain income levels:
Individuals with a 2019 filing status of Single, MFS or Qualified Widower
- Phase out begins if AGI over $75,000
- MFJ, Phase out begins if AGI exceeds $150,000
- HOH, Phase out begins if AGI is greater than $112,500
Based on the above criteria, how much can they expect?
- $1,200 for individual.
- $2,400 for MFJ
Additional $500 per qualifying child under the age of 17.
- Click HERE for more info on qualifying child.
How does the phaseout work?
For every $100 of income above the threshold, the payment will drop by $5.
- Example: A single filer with AGI of $75,100 = $1,195 ($1,200-$5).
Is the payment taxable as 2020 income?
No, the Payment is not income and you will not owe tax on your Payment. It will not reduce your refund or increase the amount you owe when you file your 2020 tax return next year. A Payment also will not affect your income for purposes of determining eligibility for federal government assistance or benefit programs.
For additional questions regarding the Economic Impact Payments CLICK HERE