Dear Texas AGIF Members:
I sent this information out last month, but some of you may not have received it because I continue receiving calls about the CARES Act stimulus checks. Below is what I sent earlier, and you may already have it. There is another stimulus bill on the works which should be for additional funding for small businesses. This information is only for the personal stimulus checks.
Last Month President Trump signed the CARES Act, legislation that will provide stimulus checks to about 90% of Americans. Here are several questions about how these checks will be dispersed, who is qualified to receive them and when they will arrive, so I wanted to help answer those frequently asked questions below.
Q: Who is eligible to receive a stimulus check?
Tax filers with a valid Social Security number, that are not a dependent of someone else and meet the income eligibility requirements, are able to receive payment.
Individual tax filers earning up to $75,000, and joint tax filers earning up to $150,000, will receive full payment. The payment is reduced by $5 for each $100 above those thresholds. Single filers with income over $99,000 and joint filers with no children earning above $198,000 are not eligible. Social Security recipients are eligible and are not required to file a return.
Q: How much money will the stimulus checks be?
Taxpayers who meet the income eligibility requirements, and filed tax returns for either 2019 or 2018, will automatically receive an economic impact payment of up to $1,200 for individuals or $2,400 for married couples and up to $500 for each qualifying child.
Q: Do I have to apply to receive my payment?
No.
Q: I didn’t file a tax return because I’m not required to, will I receive any money?
Yes. The IRS will use the SSA-1099 form or RRB-1099 form to generate payments for those who are not required to file a tax return and did not file a return for 2018 or 2019. However, utilizing these forms means the IRS doesn’t have access to dependent information and therefore, each person would receive $1,200 without the additional dependent amount at this time.
Q: How will checks be received?
Most Americans do not need to take any action to receive their checks. The IRS will use either 2019 or 2018 tax return information to calculate the payment, and the payment will be direct deposited into the same bank account from the return.
Q: What if the IRS doesn’t have my direct deposit information?
In the coming weeks, Treasury plans to develop a web-based portal for individuals to provide their banking information to the IRS online, so that individuals can receive payments immediately as opposed to checks in the mail. When that portal becomes available, my office will let you know.
Q: I still need to file my 2019 tax return. Will I still receive money if I haven’t yet filed?
Yes. The IRS will use your 2018 tax return information if you have not filed in 2019.
Q: When can I expect my stimulus payment?
Payments will begin in the next three weeks.
Q: Do I have to pay income taxes on the amount of my payment?
No.
Please pass this information on the other members and to your families and friends. This information is not new. Some of you may have already received checks or automatic deposits. I’m sending this information for those of that did not get it. If you received again, please pass it on. I will continue with updates as I am informed.
Please Stay Safe,
Gil