Everything You Need to Know about the New Stimulus Money Coming

• Author: Kelly Cooke
• Posted: 2024-08-10

As a result of what will likely be declared a "global recession" at a minimum, President Trump has approved the largest so-called "bail out" bill in the history of the United States. COVID-19 has left much of the country devastated, especially in states that have clamped down and shuttered all "non-essential" businesses and their employees. Many who had seemingly stable careers lost their jobs overnight due to government regulations.

Thankfully, every state has its own unemployment program, through which all those affected should apply. However, this money is often lackluster and cannot possibly fill the hole that a good salary filled before. That's why the vast majority of Americans will be seeing some "stimulus money" come in soon. Here's exactly what you need to know about that money.

Am I Eligible?

Eligibility requirements have varied dramatically among bills proposed by members of the House and Senate. Some stated that individuals must have children, and others gave a pittance, while some literally set up an entire Universal Basic Income (UBI) system. Ultimately, a compromise was reached.

To get the full amounts listed, you cannot earn (in 2020) more than $75,000 as a single person, $150,000 as a married couple filing jointly, or $112,500 if you file as the "Head of Household", which typically indicates you are a single parent. The amount approved is $1,200 per person with an additional $500 per registered, dependent child in the household.

Note that everyone either receiving this money or benefiting from it must have a valid Social Security Number. Unfortunately, this means that those who file taxes using an ITIN are not eligible for this and future payments under this new law. Thankfully, Social Security recipients are eligible for payments under this law, provided they meet the income requirements.

Those earning a bit higher than the limits do still qualify. However, the amount dwindles as one earns more. Generally, your expected amount goes down $5 per person for every $100 more that you make throughout the calendar year. This means that those filing as single and earning more than $99,000, those who are filing as married who make over $198,000, and those filing as "Head of Household" making over $136,500 will get no stimulus check.

How Is the Money Coming?

The money is coming in a few phases. It has been promised to begin coming out no later than the week of April 13, 2020. However, many sources from within the Senate have indicated to various publications that the IRS has planned to start sending out mass payments on April 9, 2020. There have been no reports as of then of people receiving individual payments. Keep in mind, however, that direct deposits often taken one or two business days to "hit" bank accounts, so it would be difficult to tell if they had been sent yet.

The first rounds of payments are going to those with valid, Direct Deposit accounts set up with the IRS. This could be from either a payment plan to the IRS or a refund from the IRS in 2018 or 2019. Whether you initially get a check depends on your latest tax return. If you hit the limit in 2018 but not 2019, you must file your 2019 taxes to get your money directly deposited now. However, if you hit the limit in 2019 but have not yet filed taxes, you'll still receive the extra stimulus cash.

Direct Deposits are not expected to take long, and the IRS has stated that approximately 50 million Americans will be receiving payments this way. Social Security recipients with Direct Deposit set up with the IRS will be receiving payments after working Americans receive theirs, starting around April 20, 2020. For those without any Direct Deposit information on file, physical checks will be mailed out to their last known addresses. Those concerned may update their personal information with the IRS to ensure that they get the cash they deserve.

Wrapping Up

Even though the eligibility check is done via tax returns from 2018 and 2019, the ultimate measure will be how much one earns during 2020. Should they hit the limit for their tax category, they will actually be required to pay back any money from the IRS during tax return season, so keep an eye on that income stream!