Amid the ongoing coronavirus pandemic, it was previously announced that Americans across the U.S. would receive stimulus checks as part of a larger $2 trillion stimulus package that the White House and Congress agreed to in late March. Understandably, there are many who still have lingering questions regarding these checks, such as how they will be taxed and how it could possibly affect your tax return? In the case you do have questions regarding the stimulus checks, read on to find some answers.
In late March, both the White House and Congress came to an agreement to a $2 trillion stimulus package that will help provide a jolt to the economy amid the health pandemic. The package entails that many Americans will receive up to $1,200 for individuals and $2,400 for couples. For those who claim children as dependents, they can receive up to an additional $500 for each child under 16. The payments begin to reduce for those with an adjusted gross income of more than $75,000. As of right now, stimulus checks have already been sent out to many Americans, but some have even encountered issues regarding their checks being sent to the wrong bank accounts.
Considering that there are a number of Americans who have already received their stimulus checks, many likely are focused on the questions that they have concerning them. In case you do have any questions, read on to find out everything you need to know.
When Will You Get Your Check?
There isn't an exact timeline on when you will receive your stimulus check if you have not already received it. The IRS launched an online tool on Wednesday so that you can check to see the status of your payment. It was also reported that if you haven't received your check in the next two weeks, you can go to IRS.gov to check out "Get My Payment."
Will You Get a Check If You Receive Social Security?
Katu reported that those who receive Social Security benefits will indeed get a stimulus check and that it will be deposited into the account in which you receive those benefits.
Will Adult Dependents Receive a Check?
If you are an adult who was claimed as a dependent on your parent's tax returns, you will not be eligible to receive a check. "Adult dependents are not eligible to get their own rebate and cannot be claimed for that $500 rebate as that only goes to qualifying children under the age of 17," Garret Watson, a senior policy analyst with the Tax Foundation, said, per Katu.
Are These Checks Taxed?
Federal and state officials have reported that individuals will not be taxed on their stimulus checks. Apparently, these checks will serve as an advance on a tax credit that you will get next spring, again, according to Katu.
Will The Stimulus Check Affect Your Tax Return?
Watson also addressed concerns that some raised regarding whether the stimulus check will affect your tax return. "The rebate itself is a tax credit applied to 2020 tax returns, but advanced to taxpayers using their 2018 or 2019 income," Watson clarified. "The source of the misunderstanding was when folks read that it was an advance of credit applied next year, they were thinking that means my refund is being advanced to me now."
How Much Money Will You Receive?
As previously mentioned, those with an adjusted gross income of $75,000 or less will receive a one-time payment of $1,200 (or $2,400 for a joint tax return). You can also receive an additional $500 for each child you claim as a dependent. The payments will begin to change for those who have an adjusted gross income that exceeds $75,000. USA Today reported that those who make more than $75,000 will see their payment decrease by 5% of the amount that your income exceeds that figure.
Will Retirees Receive A Check?
Yes, if you are retired, you will still receive some money. USA Today noted that as long as your adjusted gross income did not exceed $99,000 (or $198,000 for a joint return), you will receive a check.