It’s been over a month since congress passed the Coronavirus Aid, Relief and Economic Security Act, also known as the CARES ACT. The Act provided aid for many Americans during this pandemic which is not only causing death and disaster around the world, it is also killing our economy and our pockets as well. In order to receive this Aid faster here’s what you need to do.
About some 130 million Americans have received stimulus payments from the Internal Revenue Service (IRS), but millions are still waiting on theirs. The first several rounds of payments have gone out to eligible recipients via direct deposit, which is considered the fastest way for the IRS and Treasury Department to get taxpayers their stimulus payments. The IRS is asking everyone who hasn’t gotten a payment yet to add their direct deposit banking information to the IRS “Get My Payment” website by Wednesday. A release from the IRS said the agency plans to begin preparing files to send paper checks after 12 p.m. ET Wednesday.
Taxpayers and other eligible recipients who miss the direct deposit deadline may have to wait for a paper check, which the IRS says will begin arriving in late May and into June. About 5 million checks will go out each week.
The IRS has been using 2018 and 2019 tax documents to disburse payments to some, but even people who did not file in those years may be eligible. If you missed filing in 2019, you may need to do so in order to receive payment.
Stimulus Breakdown
If you have been living under a rock, here is what the Act provided. The aid is given to the individuals whose earnings are less than $75,000 a year, $150,000 a year if married and filed jointly. If your income is more than $75,000/$150,000 if married filing joint, you may still receive some aid so long as your income does not exceed $99,000/$198,000 if married filing jointly.
Who’s Eligible for the Stimulus Check?
The aid for Americans will be for $1,200/$2,400 if married filing jointly. An additional $500 per child will be given as well. Now, the good news is if you have a qualifying child (which will be explained below) the Income limit for Full Aid/Full Payment will be increased by $10,000 per child.
Ex.: If you’re Married filing jointly and you’re reporting a qualifying child, your new income limit will be $208,000. [$198,000 (Income Limit) + $10,000 (Increase) = $208,000 (new Income limit)]
What are the Qualifications to receive this Aid?
Aside from the income limitations there is other criteria to meet in order to receive the Stimulus Check. To qualify for a payment, you must:
Be a U.S. citizen or U.S. resident alien
Not be claimed as a dependent on someone else’s tax return
Have a valid Social Security Number (SSN). Or if you or your spouse is a member of the military, only one of you needs a valid SSN
Have an adjusted gross income below a certain amount that is based on your filing status and the number of qualifying children under the age of 17. If you are not required to file taxes because you have limited income, even if you have no income, you are still eligible for payment.
You may be eligible based on the criteria below, even if you aren’t required to file taxes. If you qualify, your Economic Impact Payment amount will be based on your adjusted gross income, filing status, and the number of qualifying children under age of 17. You will receive either the full payment or a reduced amount at higher incomes.
Qualifying Child
In order to receive an additional $500, there is a certain criteria to meet:
Claim your child/children as a dependent(s) on your tax return
They must be under age 17
They must be related to you (blood, marriage, or adoption)
They cannot provide more than half of their financial support during the tax year
They must be a U.S. citizen, a U.S. national or a U.S. resident alien
They must live with you for at least half of the year