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The American $2,2 Trillion Bazooka

Categories: US: COVID-19 Tags: Bazooka, COVID-19, IRS, Trump

COVID-19 Relief Checks Will Be Sent by IRS to 2018 and 2019 Taxpayers Using the Same Refund Method Selected by the Taxpayer

On March 27, 2020, President Trump signed a $2.2 trillion stimulus coronavirus relief bill.  Under the bill, certain individuals are eligible to receive a one-time relief check up to $1,200.  Taxpayers who filed taxes in 2018 or 2019, do not need to sign up or fill out a form to receive a relief check payment.  Taxpayers will receive relief check via the same method IRS used to issue a taxpayer’s last tax refund.  This relief check is not taxable and the recipient will not be required to pay the government back.

Who is eligible to receive relief under the bill?

The relief bill applies to Americans, green card holders and individuals legally present in the U.S. on a work visa such as an H-1B and H-2A.  Disabled veterans, social security recipients, and non-dependent college students are also eligible.

How much money can you expect to receive?

  The total relief amount depends on the number of dependents and household income.  Under the bill, any individual who made $75,000 or less will receive a one-time payment of $1,200.  If you made more than $75,000, your payment will be reduced by $5 for every $100 of income that exceeds $75,000.  For example, if you made $78,000 on your last filed tax returns, you will receive $1,050.  If you made over $100,000, you will receive $0.  However, if earned $112,500 or less, but filed as “head of household,” then you will receive $1,200.  Couples who filed jointly and made less than $150,000 will receive $2,400. In addition, each family will receive an additional $500 for each child of 16 years of age or under.

Do you have to sign up to receive relief? 

No, you do not need to sign up or fill out a form to receive a one-time relief check payment if you paid taxes in 2018. 

When can you expect to receive the check? 

On March 25, 2020, Treasury Secretary Steven Mnuchin said the checks will be sent out “within three weeks” to people for whom the IRS has information.  According to Secretary Mnuchin, eligible individuals can expect to receive the check by April 15, 2020. 

How will the check be delivered? 

IRS will use an individual’s last tax return to calculate the relief amount.  Relief checks will be sent using the same refund method selected by the taxpayer on his or her last Form 1040.  If you received a tax refund in the last two years by direct deposit, the relief check will be sent via the same method.  If instead, your refund check was mailed to your address, then IRS will mail you a check to your “last known address.”  IRS will have 15 days to notify you of the method and the amount of payment. 

What if you didn’t file or pay taxes in 2018 or 2019?

  If you are on social security but did not file a tax return, you will be eligible to receive relief if you received a Form SSA-1099 for the year 2019. 

For more information please contact us.