Individual Stimulus Payment

The federal government passed the CARES ACT on March 27th, 2020, which included a tax credit that would be pre-paid to eligible recipients. See below for information eligibility:

 

Timing:

  • Unknown at this time.

Method of Payment:

  • The IRS will be handling distribution of the stimulus payment.
  • The IRS will utilize the same method of delivery as your most recently filed tax return.  
  • Two weeks after sending the payment to eligible individuals you will receive a letter from the IRS notifying you of the method used AND a process to follow in the event the payment was not received.

Details:

  • The IRS will utilize your most recently filed tax return to determine the eligibility and amount of payment during the summer of 2020. See below section “Amount of Payment” for income eligibility thresholds and payments amounts.
  • Senior citizens who are not required to file a tax return will be eligible for the individual stimulus check.
    • The IRS caused a stir indicating this may not be the case, but Congress has since stepped in and confirmed that the IRS will work with the Social Security Administration to identify those eligible who do not file a tax return.
  • In the coming weeks, the Treasury Department plans to develop a web-based portal for individuals to update their banking information to the IRS online if necessary. 
  • While the summer of 2020 payment will be based on historical data from your most recently filed tax return, your final eligibility evaluation will be based on your 2020 income tax filing.
  • What this means is that if your income was above the eligibility thresholds summarized below in 2019, but falls below the cutoff for tax year 2020, you will receive the stimulus payment as part of your 2020 tax return.

Amount of Payment by Tax Filing Status:

  • Married Filing Jointly
    • Amount:
      • Full rebate payment of $2,400.
      • Plus $500 for each qualifying child (under age 17).
    • Eligibility:
      • Full payment when Adjusted Gross Income (AGI) is less than $150k.
      • Phase out of payment when AGI is between $150k and $198k.
      • Not eligible for payment when AGI is greater than $198k.
  • Single, Married Filing Separately, or Qualifying Widow
    • Amount:
      • Full rebate payment of $1,200.
      • Plus $500 for each qualifying child (under age 17).
    • Eligibility:
      • Full payment when Adjusted Gross Income (AGI) is less than $75k.
      • Phase out of payment when AGI is between $75k and $99k.
      • Not eligible for payment when AGI is greater than $99k.
  • Head of Household
    • Amount:
      • Full rebate payment of $1,200.
      • Plus $500 for each qualifying child (under age 17).
    • Eligibility:
      • Full payment when Adjusted Gross Income (AGI) is less than $112,500.
      • Phase out of payment when AGI is between $112,500 and $136,500.
      • Not eligible for payment when AGI is greater than $136,500.

NOTE:  It is currently unknown if you will have to repay the stimulus check if you receive a payment in the summer of 2020 but are ultimately ineligible when filing your 2020 tax return. 

Contact Information

30980 Lorain Road, North Olmsted, OH 44070
PH: (440) 686-9663 | FAX: (440) 686-9664

info@pbcpafirm.com

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