$1,200 Stimulus Checks Are Coming, Here's What You Should Know
DALLAS (CBSDFW.COM) — Millions of Texans should soon be getting $1,200 checks from the U.S. government as the House passed the $2 trillion stimulus bill on Friday.
Millions of Americans have already been laid off or seen their paychecks decreases.
The government is hoping the money will help many Americans, affected financially by the coronavirus, keep food on the table, make rent, and pay for medical costs.
Here's what to know about the payments.
Who will get a $1,200 check?
All individual taxpayers will get $1,200 each if their adjusted gross income is less than $75,000. Married couples will receive $2,400 if they earn less than $150,000 in adjusted gross income.
People who make more the $75,000 ($150,000 married) will receive smaller checks, with a $5 reduction for every $100 in income above $75,000. Individuals who make more than $99,000 ($198,000 married) are not eligible.
Who gets an additional $500 for each child?
All taxpayers with dependent children will be $500 for each child, regardless of how high their income is. However, only children under the age of 17 are eligible.
Do you have to apply for the money?
No. As long as you filed your taxes either this year or last year, the IRS will direct deposit the money into your account or send you a physical check if that's how you have your tax returns set up.
When will you get the money?
This is big question and the hardest to answer. Treasury Secretary Steven Mnuchin said he would like to have the payments sent out in three weeks but many economists say it could take longer.
"There is going to be a wait," said Robert Dye, chief economist for Comerica Bank. "I think it is fair to say three weeks is probably the minimum and it could probably go farther than that, so you have to give yourself some padding to get through the next couple of weeks until these checks to get here."
Do people on Social Security need to file a tax return to receive a stimulus check?
(Updated 4/1/2020) The $2 trillion stimulus legislation said the U.S. Treasury should use information from Social Security if someone has not filed taxes in 2018 or 2019. This way millions of seniors would not have to fill out any additional forms to receive their stimulus payment.
However, the IRS posted guidelines on its website on March 30 that contradict the legislation. According to the IRS guidelines, "People who typically do not file a tax return will need to file a simple tax return to receive an economic impact payment. Low-income taxpayers, senior citizens, Social Security recipients, some veterans and individuals with disabilities who are otherwise not required to file a tax return will not owe tax."
The CBS 11 I-Team contacted the IRS for clarification. An IRS official told the I-Team more information will be released in the coming day about this issue.
Do college students get the money?
In most cases, no, because students under the age of 24 are usually claimed as dependents.
Are the $1,200 payments taxable income?
No.
If you owe on taxes, will your check be deducted?
No.
If you defaulted on a student loan, will your check be deducted?
No.
If you have unpaid child support, will your check be garnished?
Yes.
If you recently had a baby, will you get the $500 child credit?
Yes, you will receive the $500 credit but you will most likely have to wait until you file your 2020 taxes where it will be applied as a tax credit.
What if you exceeded the income limits in 2019 but your income this year has gone down, will you get the stimulus payment?
Yes, but you will have to wait. If you do not qualify for the stimulus check based on your latest tax return (or because you did not file taxes) but will qualify based on your income this year, you will receive a tax credit on your 2020 taxes. These stimulus checks are basically an advance on this tax credit.