An unprecedented stimulus bill passed this week. It’s designed to provide relief to Americans during the coronavirus pandemic. The $2 trillion stimulus package provides relief to most businesses, individuals and families.
Part of the relief effort involves sending payments directly to American families.
Unfortunately, the qualifications can be confusing. Here’s what you need to know about the coronavirus stimulus and how much money you will get.
How Much Money is the Stimulus Payment?
Use our stimulus payment calculator to evaluate how much money you can expect to receive. Most Americans can expect to receive a $1,200 payment.
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If your adjusted gross income is less than $75,000 per year, you will receive the maximum individual benefit of $1,200. If you’re married and filing jointly you can receive $2,400 if your combined income is less than $150,000 per year. Income levels are based on adjusted gross income.
If you earn more than $75,000, there’s a sliding scale. For every $100 more than $75,000 you earn, your stimulus payment will be $5.00 less.
That scale goes all the way to $99,000 when the income increases offset all of the stimulus. Earning more than $99,000 means you won’t receive a stimulus payment.
Children under the age of 17 will receive $500. However, higher incomes can phase out these payments as well.
Unfortunately, kids over the age of 17 will not be eligible to receive stimulus payments. The same goes for many college students whose parents claim them as dependents.
Finally, heads of household have different income requirements than single or married people. Their phase out begins at $112,000 adjusted gross income.
Stimulus Payments by Mail or Direct Deposit
Stimulus payments will be delivered in two different ways.
First, the IRS will make digital payments if they have your banking information. If you filed your taxes digitally in 2018 or 2019, the IRS will use the direct deposit info they have on file.
Money will arrive in your bank account via direct deposit sometime over the next three weeks.
If you receive your tax refunds via check, the government will mail you a check instead. The checks will be mailed in a similar timeframe of three weeks. Some experts worry about delays with this method though.
The IRS will use your last known mailing address to mail these checks.
So long as you meet the income requirements and filed taxes for 2018 or 2019, you qualify.
Freelance workers will also be eligible to get a stimulus check.
Congress is already talking about more stimulus measures in the coming months. Unfortunately, details on these additional payouts or strategies remain scarce.
We will do our best to provide an update as more information comes in.