The coronavirus crisis has already affected numerous facets of American society. In response to this pandemic, the White House and Congress agreed to a deal in late March that provided for a $2 trillion stimulus package in an effort to help boost the economy. Since there have been many lingering questions regarding this package, you might be left wondering what this deal entails for you specifically. And if you have any major questions about this stimulus package, you're definitely going to want to read on to find out the answers to all of your biggest concerns.
On March 25, it was announced that those on both sides of the aisle in Congress had come to an agreement regarding the stimulus package. This deal not only provides financial assistance to Americans who have been struggling amidst this pandemic, but to businesses who have been affected, as well. Beginning in mid-April, it appeared as though Americans were finally starting to receive the stimulus checks that were promised in this package. Although, of course, there are still many out there who are eagerly awaiting to receive their own check.
When can you expect those checks to arrive? And how much will they be for? Read on to find out everything you need to know about the stimulus checks.
What Does This Stimulus Package Entail?
The stimulus package entailed that many Americans would receive a one-time check for $1,200. The package also provided for assistance to businesses around the country as well as increased funding to hospitals and the inclusion of unemployment insurance.
Who Is Eligible?
Those who have an adjusted gross income of $75,000 or less will receive a one-time payment of $1,200 (or $2,400 for those filing joint tax returns). If you make more than $75,000, that payment will begin to decrease. Those who make $75,000 or more will see their payment decrease by 5% of the amount that your income exceeds that figure, per USA Today.
How Much Could You Receive?
As aforementioned, eligible Americans will receive $1,200 for individuals and $2,400 for couples filing a joint tax return. Additionally, those who claim their children as dependents can receive up to $500 per child.
Have Checks Been Sent Out?
Many Americans have already received their payments, as around 50 million individuals reportedly received checks in early April. Those who have not yet received their checks will receive them in due course, with other payments set to go out towards the end of the month.
Will They Be Direct Deposited?
These checks are able to be direct deposited. For many of these checks, the IRS is using banking info that you have provided during tax filings in order to deposit them. So, you should see the checks being deposited directly into those specific accounts.
Will It Be Taxed?
One of the biggest questions that Americans have regarding these checks concerns whether or not they will be taxed. According to Katu, federal and state officials have reported that these payments will not be taxed and that they will instead serve as an advance on a tax credit that you will get next spring.
When Will It Arrive?
If you have not yet received your stimulus check, you are not alone. Like many others, you will likely receive your check in the upcoming weeks. For those who want to stay up to date on when their payment may arrive, you can check out a tool that the IRS recently released that enables you to check the status of the payment. You can also insert your bank information if you wish to receive the payment via direct deposit.