Have you heard? The US Government wants to send you a check $!!! The recently passed CARES Act contained a number of provisions targeted to assist individual taxpayers and businesses impacted by COVID-19. At this point, aren’t we are all wondering, “Who hasn’t been impacted?”
Here are a few key points you need to know about the stimulus checks:
Q How much will the check be? A $1,200 per eligible taxpayer and $500 per eligible child.
Q Who is eligible?A You are a US citizen and meet the income/age requirements.
Q What are the income requirements?A Single filers with AGI < $75k and Joint Filers with AGI < $150k will get the full $1200 (each) Single filers with AGI > $99k and Joint Filers with AGI > $198k will get $0 Between those figures, the check gets reduced by $5 for each $100 over the bottom limit
Q How do you determine your AGI?A AGI used is that from your latest tax return. This is VERY important– you need to review your 2018 & projected 2019 tax returns to determine your AGI status. DO NOT FILE YOUR 2019 TAX RETURN BEFORE DETERMINING YOUR STATUS. Your 2019 tax return is not due until 7/15/2020. Please call us with questions about this.
Q What are the age requirements?A Age applies to children and the age limit is 17. Families with children age 16 and younger will get $500 per child. Children (dependents age 17 and over do not qualify)
Q Is the stimulus check taxable?A No!
Q When will I get the check?A Well…it depends. If you had a refund on your last federal tax return and you elected direct deposit, the treasury plans to direct deposit the funds to your bank. This should be happening now. If not, the Treasury will send you a paper check. Checks should start mailing beginning 4/24/2020 at a rate of ~ 5,000,000 each week starting with taxpayers with the lowest AGI. That means paper checks are likely to be received between May and September.
Q Is there a way to get the IRS my direct deposit information?A There is. A link on the IRS website (www.irs.gov) is supposed to go live on April 17th. The IRS online tool called “Get My Payment” will enable you to input your bank information to get your check faster.
Q Will my college student get a stimulus check?A Not if they are claimed as a dependent on your tax return. For those age 17+, the only stimulus check for which they could be eligible is if they file their own tax return independently.
I’m sure there are many additional questions, but these are a few of the most common. If you have questions regarding the stimulus or other tax and financial planning concerns, please give us a call or e-mail.
Although we are in the office and our business is listed as essential, we are trying to do our part to keep you safe by limiting the amount of face to face client meetings. We have recently expanded our technology to accomplish more via electronic documents. If there is anything you need, please don’t hesitate to ask.
Best regards,.Ryan Hobbs, CFP®.Ryan Hobbs Investment Services1119 Walnut Dr., Ste. 1Ardmore, OK 73401580-224-9977 or 866-808-9977.Securities and advisory services offered through Geñeos Wealth Management, Member FINRA/SIPC.P.S. Please feel free to forward this information to family, friends, or colleagues. If you would like us to add them to the list, please reply to this email with their email address and we will ask for their permission to be added. If you are new to our E-News, we welcome you and hope you enjoy it.
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