Economic Impact payments are on their way, and most Americans have already received their money.
But, what does it mean for you if you haven’t?
Where is my stimulus check?
The IRS began sending out stimulus payments in April. But if you haven’t received yours yet, there’s no reason to panic. Retirees, senior citizens, and taxpayers who filed income taxes in 2018 and 2019 and included direct deposit information were the first groups to receive their payments.
If you’re not in one of those categories, you’ll still receive a payment, but it’ll arrive by mail instead of being directly deposited into your checking or savings account. Taxpayers who didn’t include direct deposit information will receive a paper check sometime in May.
The IRS does a feature on its website that will allow taxpayers to provide direct deposit information if their check hasn’t yet been mailed. However, the feature isn’t slated to be up and running until mid-April.
What you need to know about payments
Most taxpayers are eligible to receive a stimulus payment. The payments are automatic, and no further action is needed to receive the payment.
The amount, however, will vary based on filing status, the number of dependents and adjusted gross income (AGI). Individuals or head of household filers will receive $1,200, while married taxpayers filing jointly (if they aren’t a dependent of another taxpayer) will receive $2,400. Taxpayers will receive up to $500 per dependent claimed on their federal tax returns in 2018 and 2019.
Stimulus payments are based on the AGI claimed by the filer. Taxpayers will receive the amounts listed above if they have a work-eligible Social Security number and adjusted gross income up to:
- $75,000 for individuals
- $112,500 for head of household filers
- $150,000 for married couples filing joint tax returns
Taxpayers will receive a reduced payment if their AGI is:
- $75,000 and $99,000 if their filing status was single or married filing separately
- $112,500 and $136,500 for head of household
- $150 and $198,000 if their filing status was married filing jointly
Can I track my payment?
Right now, no. However, the IRS has developed a website that will allow filers to check the payment status, confirm payment type and enter direct deposit information if the check hasn’t been mailed yet. The IRS website indicates that the “Get My Payment” option will be available mid-April.
The website is open to non-filers. If you didn’t file a 2018 or 2019 federal income tax or you weren’t required to, you can enter your information on the IRS website and select the preferred method of payment.
We’re facing an unprecedented situation that seems to be changing daily. Please know, Welcome Credit Union is here for you during this time. If you’re facing an uncertain financial situation, talk to us. Let us help you find a solution that works for you while you’re waiting for your stimulus payment. We have several options available to our members because we want to help them come through this stronger. Please don’t hesitate to reach out and let us know how we can be there for you.
Over the weekend, President Donald Trump signed a $2 trillion economic relief plan set to provide aid to millions of Americans impacted by the COVID-19 (Coronavirus) pandemic. The package includes stimulus payments for individuals, additional unemployment coverage, student loan relief, and more.
But, what does that mean for you?
Most adults will receive a check or direct deposit. The amount will vary based on adjusted gross income, filing status, and the number of dependents you claim. The amounts will break down as follows:
- Single adults who made $75,000 or less annually will receive $1,200. If you have qualifying children 16 or under, you will receive an additional $500 per child.
- Married couples with no children who made $150,000 or less will receive $2,400.
- Taxpayers who file as the head of household will get the full payment if they earned $112,500 or less.
- For single adults who make more than $75,000, the payment gradually decreases until it stops all together at $99,000.
- For married people with no children who make more than $150,000, the stimulus payment gradually decreases until it stops all together at $198,000.
If someone claims you as a dependent – even as an adult – you will not eligible for a relief payment. To see your adjusted gross income, look at Line 8B on your 2019 1040 federal tax return.
Most people will receive their payments within three weeks. However, according to the bill, you’ll receive a paper notice in the mail a few weeks after your payment has been distributed. That notice will also contain information about where the payment ended up and in what form it was made.
Additional Unemployment Coverage
Under the stimulus package, additional unemployment benefits will be extended to people who wouldn’t typically be eligible for unemployment.
Typically, self-employed and part-time workers, gig workers, freelancers and independent contractors aren’t eligible for unemployment benefits, but under the stimulus package, those groups will be protected. Benefits will be calculated based on previous income using a formula from the Disaster Unemployment Assistance program.
Under the plan, eligible workers will get an extra $600 per week in addition to the state unemployment they are currently receiving. The state unemployment and extra coverage is designed to replace the paycheck that has been lost due to Coronavirus (COVID-19).
Student Loan Relief
The federal government has already waived two months of interest and payments for student borrowers. There will be an automatic payment suspension until Aug. 30 for any student loans held by the federal government. Older Federal Family Educational Loans, Perkins loans or loans from state or private agencies are not eligible. However, if you have a private student loan, it’s worth asking to see what options are available to you.
The stimulus package has also suspended certain retirement account rules for the calendar year 2020. No one will have to take a required minimum distribution from individual retirement accounts or workplace retirement savings plans.
If you have an IRA or workplace retirement plan, you can withdraw up to $100,000 without the usual 10 percent penalty as long as the withdrawal is because of the COVID-19 outbreak. The withdrawal qualifies if you, a spouse or dependent tested positive for the virus or you experienced other negative economic effects related to the pandemic. You’ll also be able to spread out any income taxes you owe as a result over a three-year time period from the date of the distribution.
You can also borrow from your 401(k) and can take out twice the usual amount. For 180 days after the bill passes, if you provide certification that you’ve been affected by the COVID-19 pandemic, you can withdraw up to $100,000. If you already have a loan and it’s supposed to be repaid before Dec. 31, you get an extra year.
We’re facing unprecedented times; the pandemic has touched everyone’s lives in some way. Please know, Welcome Credit Union is here for you during this time. If you’re experiencing financial hardship due to the Coronavirus pandemic, reach out and talk to us (please link to About Us | Locations & Hours). Let us help you find the option that works best for you. We can get through this together; one step at a time.