It is a very important day for the stimulus bill. Yesterday it passed that Senate and it is expected to be voted on in the House. Based on everything I have read, there may be some House members who are skeptical about the bill but the Speaker does expect it to pass. The President seems to also support the bill so I would expect him to sign it very quickly when it passes the House.
Today I want to focus on the part of the stimulus bill that will impact the largest number of people. In the bill it is called “Recovery Rebates for Individuals”. I’m sure you’ve all heard about this provision and I had a lot of questions about this from people after yesterday’s email.
Most adult individuals will be entitled to receive $1,200 and dependent children will receive $500. To be entitled to receive the money, you must be a citizen of the United States and have a social security number. The rebate phases out for higher income people. The amount of income you can earn and still receive the full amount of the rebate is determined by your tax return filing status and are as follows:
Individual - $75,000
Head of Household - $112,500
Joint - $150,000
The qualified income numbers will be determined by your 2019 income tax return if you have already filed it. If not, by your 2018 income tax return. The most frequently asked question I had yesterday was from people who are on Social Security. Many Social Security recipients are not required to file tax returns so most don’t file. But don’t worry, if you are on Social Security you are still entitled to the rebate even if you don’t file tax returns.
It is important to note, if you are a wage earner and haven’t filed either your 2018 or 2019 tax returns, it does not appear that you will receive a rebate check. So, I recommend that you make sure to quickly file either 2018 or 2019 tax returns if you don’t have either of them filed. Don’t worry if you owe the IRS money and can’t pay it right now. As long as you have either the 2018 or 2019 return filed, you will get your rebate because the bill states that the rebate cannot be used to offset taxes previously owed. The purpose of this money is to help individuals and families make it through this tough financial time and also to provide a little stimulus to the economy.
I hope that you found this information useful. Tomorrow I am going to discuss the expansion of unemployment benefits. I think this part of the bill will really help a lot of people survive this economic crisis.
Together, we will get through this.
The Golden Law Group