By Destiny R. Barbosa, Esq.
Individual Economic Impact Payments During COVID-19
While the country is practicing “social distancing”, concern grows not only about our health, but also about our financial futures. The practices for “social distancing” necessarily put a strain on big and small businesses internationally. As a result of the increased concern among Americans, the government has put together a stimulus package with the hopes of helping to ease some of this stress. The CARES Act will permit the government to make payments directly to individuals. Some of the details for individual payments are below.
Most importantly – will you qualify? You can determine whether or not you qualify by reviewing your 2019 tax return. If you have not filed your 2019 tax return, which the government recommends you do as soon as possible, then you can look to your 2018 tax return to see if you qualify. To see if you qualify, look to your adjusted gross income.
- Single person (not filing as a married couple): If you are a single person and earned up to $75,000 then, you may qualify for up to $1,200.
- Married couples: a married couple earning up to $150,000 combined may qualify for $2,400.
- There is also an additional $500 available to parents with children under 17 years of age.
What if you already owe a tax obligation? You can still receive a payment if you qualify, regardless of your tax obligation.
Do you have to pay it back and will you get taxed for this payment? No and no. These payments are not taxed and will not need to be paid back. The purpose of the economic impact payments is to push money into the market by providing Americans with funds to use for groceries, gas, rent, and other bills or needs that so many of us are concerned about right now.
When will you get the funds? Qualifying Americans will receive direct deposits from the government beginning in the next few weeks.
The IRS is updating its website with important information regarding the stimulus payment, and you can check it out at www.IRS.gov/coronavirus.
The full CARES Act can be found at https://www.congress.gov/116/bills/hr748/BILLS-116hr748enr.pdf.