The COVID-19 pandemic has caused economic hardships for a large number of Americans. As the US unemployment rate threatens to reach 24%, it is clear that relief is a top priority for a large percentage of the population.
As a part of the CARES Act, which was signed into law back in March, Americans that earn below a certain level of income are promised a $1,200 stimulus check from the government.
While many Americans have already received their stimulus checks, some are still waiting as they are released in batches. Many Americans still have questions about this process and there have been a few hiccups along the way.
In this article, we will address the common questions that our clients are asking about the Economic Impact Payments.
Do I Make Too Much To Receive A Stimulus Payment?
This is a great question, there are certain financial requirements that apply to these stimulus checks. Some Americans will make too much money to qualify. Here are the general income requirements according to the IRS:
$75,000 is the income cap for individuals.
$112,500 is the income cap for those that file as head of household.
$150,000 is the income cap for married couples that file jointly.
It is important to note that these numbers are based on adjusted growth income.
Does This Count As Taxable Income?
No, this payment is not taxable income. This will not affect the income that you made during the tax year 2019 or 2020. This will also not affect the tax refund that you will receive, if you receive one.
What If I Don’t Pay Taxes?
There are many individuals who aren’t required to file taxes for many reasons. For example, those receiving social security recipients, those on disability, and those receiving VA benefits may not have a high enough income that they need to complete and file taxes with the IRS.
These individuals should have automatically received their payment without updating any information with the IRS.
Individuals with an income less than $12,200 that are not required to file income taxes may need to provide their information to the IRS.
If you haven’t received your stimulus check yet, the IRS may need your information. You will need to sign up as a non-filer on the IRS website, here is the link.
What If I Receive A Check For A Relative That Is Deceased?
This is a difficult topic and can be confusing to the living recipient. If you receive a stimulus check for a loved one that has passed, the IRS asks that you return the check.
If this check is made out to a couple that filed their income tax return jointly and one spouse has passed away, the entire check doesn’t have to be returned, just the decedent’s portion. The other exception is if the individual passed away after the check was received, then the entire amount can be kept.
Can We Expect A Second Round of Stimulus Checks?
As of now, there is no guarantee for another round of stimulus checks. While the HEROES Act has been proposed and passed in the house, there is no guarantee that it will pass in the senate or escape a presidential veto.
Only time will tell if there will be a second round of stimulus checks. Many legislators have remarked that they would rather wait to see how the reopening of the economy pans out before dedicating more funding to a second relief package.
How Can I Avoid Scammers?
There have been a series of scams regarding the economic impact payments. Sadly, scammers see this pandemic as an opportunity to profit off of others. For more information, check out this previous blog post from TaxBandits.
Remember, the IRS will NOT ask you for your sensitive information over the phone or in an email. If this happens, you are NOT talking to a representative of the IRS.
For even more information regarding the economic impact payments, check out the IRS resources by following the link below.
Don’t forget that the TaxBandits team is here for you. With changing IRS filing deadlines and new IRS forms to request COVID-19 tax relief, we are here to answer your questions and help you complete your IRS tax forms.
We are here to make sure you are able to meet your deadlines and file the forms you need to make the most of COVID-19 tax relief for your business. Don’t hesitate to reach out to our support team!