The massive aid package will channel $ 290 billion in direct payments to individuals and families. The measure has yet to be passed, as the bill must now pass the House, but households are expected to receive a check in weeks or months.
That could provide a lifeline for the millions of Americans who have already been laid off or have seen their incomes drop as people go into hiding to avoid infection.
"Low- and middle-income households would receive about 68 percent of the payments," Howard Gleckman, principal investigator for the Center for Fiscal Policy, said in a blog post.
Here's what you need to know about how payments will work, according to Up News Info News.
Who will receive a $ 1,200 check?
The key factor is your annual household income, because the package is intended to help low and moderate income families. Some wealthier families may not receive a stimulus check.
- Individual taxpayers will receive $ 1,200 each if their adjusted gross income (AGI) is less than $ 75,000.
- Individual taxpayers with AGIs greater than $ 75,000 will receive smaller checks, with a reduction of $ 5 for every $ 100 in income greater than $ 75,000.
In other words, if your AGI is $ 80,000, your check would be reduced by $ 250; the total payment would be approximately $ 950. To determine how much you will get, you can use this OmniCalculator stimulus verification calculator.
According to Gleckman, middle-income households earning between $ 51,000 and $ 91,000 would receive an average payment of about $ 1,810, or about 3% of their after-tax income.
What if I am married or head of the family?
- Married couples will receive $ 2,400 if they earn less than $ 150,000 in adjusted gross income.
- Household heads will receive $ 1,200 if they earn less than $ 112,500 in AGI.
- Payments will be reduced by $ 5 for every $ 100 in income above those AGI limits.
How do I find my adjusted gross income?
Adjusted gross income reflects how much of your income is taxable after certain deductions, such as your retirement contributions. Here's how to find your AGI:
- Fiscal year 2018: Line 7 on your Form 1040.
- Fiscal year 2019: line 8b of your Form 1040.
Will children receive a $ 500 check?
Yes. Taxpayers with dependent children will receive a payment of $ 500 for each child, which is not determined by income. In other words, taxpayers will receive a payment of $ 500 for each of their children, regardless of how high their income is.
I haven't filed my 2019 taxes yet. Does that matter?
No. The government will base your checks on your 2019 or 2018 tax return. If you have not yet filed your 2019 taxes, and many people have not, since the IRS has delayed your 15th tax filing deadline. From April to July 15, the government will use your 2018 tax returns to determine your stimulus payment.
When will I receive my check?
This is the great unknown. Aides to Congress have said the checks could be rolled out in a matter of weeks, according to Politico.
But writing checks to millions of Americans is tricky, and payments may not come in months. The stimulus payments issued in 2008 during the Great Recession took approximately three months after they were approved in Congress to really reach consumers, said Janet Holtzblatt, principal investigator at the Center for Fiscal Policy.
Who will not receive a check?
- High-income people without children. For example, people who earn more than $ 99,000 are completely removed from the stimulus plan. Married couples who earn more than $ 198,000 (and have no children as dependents) are also not eligible for payments.
- Non-resident aliens. Workers in the US USA Without a green card they don't qualify, according to the bill.