By Pam Zubeck
Wondering how much you’ll get from the $2 trillion stimulus package just passed by Congress to pump money into the economy due to the COVID-19 pandemic crisis?
Marketwatch.com provides a detailed description of how payments will be calculated.
In short, here are the rules, based on that website:
• Taxpayers making $75,000 and below will receive a $1,200 check. Married couples making $150,000 and below will receive $2,400. Taxpayers falling under those caps also will receive $500 per child. Those who file as “head of household” — meaning they are unmarried, have children or dependents and pay more than half of their household expenses — will get the $1,200 check if they make $112,500 and below.
• You won’t be taxed on the stimulus check.
• All of that is based on adjusted gross income, which is gross income less deductions. Checks will be based on 2018 tax filings, or on 2019 filings, if they’ve been made. However, 2019 taxes aren’t due until July 15, moved from April 15 amid the COVID-19 crisis.
• Those who receive Social Security benefits will be eligible, as will green card holders.
• The checks phase out for incomes above $75,000 a year and caps for individuals making above $99,000 a year. For married couples, income of $198,000 a year is the cap and those filing as head of household are capped at $146,500 a year, according to analysis from the office of Senator Charles Grassley (R-Iowa).
• Checks will be paid via direct deposit to bank accounts taken from taxpayer’s 2018 or 2019 returns. If you didn’t use bank information for direct deposit on your filing, your check will come in the mail.
Want to calculate your check? Go to the Washington Post‘s website and plug in your data.
The Post also reports there’s a catch to all of this, as follows:
The only catch is that technically a person’s 2020 income is what qualifies them for the payment. Since no one knows their total 2020 income yet, the government is using tax returns from 2019 and 2018 to figure out who qualifies for a check. It is possible that someone may have to pay back some of the money if his or her income this year turns out to be significantly more than it was in 2019 or 2018. That’s expected to be a relatively small share of people, and the money would not have to be paid back until April 15, 2021.
Checks will start going out the week of April 6 and could take several weeks to mail, the Post reports.