Cash Payments (or rebate checks): This is a rebate check based on on the income information you provided on your 2019 tax return. The IRS will provide rebate checks according to your filed 2019 tax return (adjusted gross income and filing status) or the last year filed. If you have not filed a 2019 return it will be based on your 2018 return. It will not be considered taxable income to you when you file your taxes next year.
These are the qualifications:
• Individuals earning less than $75,000 can expect a one-time cash payment of $1200.
• Married couples filing jointly but making less than $198,000 would receive $2400 one-time cash payment.
• Families with qualifying dependent children would receive an additional $500 per child.
• Money will be direct deposited if the IRS already has your current bank account info. If not, expect a check issued to the address on file at the IRS.
• According to Treasury Secretary Steven Mnuchin, payments are expected to arrive within 3 weeks. However, most say that is optimistic and it could take as long as 3 months.
• If the money doesn’t show up in your mail box or bank account, or you receive less than what you think you’re owed, you can make a claim when you file your 2020 tax return.
• People that are on social security will also receive a stimulus payment.
• US Citizens living abroad; you will also be able to get a rebate payment. However, you will not recieve the additional $500 per child credit if your child did not qualify for the child tax credit on your U.S. tax return.
• The rebate/stimulus payment received is not considered taxable income to you in 2020.
• If you owe a passed due tax debt you will still recieve the rebate. It will not be applied to that debt.
Use of Retirement Funds for Coronavirus Costs: If you take out retirement funds for a coronavirus related illness, or financial consequences relating to job loss, or being unable to work because of the crisis, you will not be penalized for early withdrawal. You can withdraw from a retirement fund without being subjected to a 10% early withdrawal penalty.
Charitable Contributions: A new direct deduction against 2020 tax income for up to $300, even if you don’t itemize on your return for 2020.
Extra Unemployment Payments: You can get a bigger unemployment check, for a longer period of time. The amount of money a worker receives when they apply for unemployment benefits, and for how long, varies by state. Under this new package, workers will be paid an additional $600 per week on top of what they would normally receive for up to four months; until July 31. Total payout amount varies state by state, but this bill adds another $600 per week from the federal government.
• Self-Employed Individuals typically can’t apply for unemployment – However, this bill creates a new, temporary Pandemic Unemployment Assistance program through the end of this year to help people who lose work as a direct result of the public health emergency.
• A note to my nonprofits – Some nonprofits aren’t required to pay unemployment insurance on behalf of their employees, so unfortunately, these organizations are not able to secure unemployment benefits from the government for their employees. For churches that haven’t paid into the unemployment system, it would be advisable to check with your state to see if this addition will qualify your staff for unemployment.