Ever since the outbreak of Covid-19 and the passing of the CARES Act, the $1,200 stimulus payments have been a hot topic. Below, I will try to answer some of the most common questions that I have heard along the way. I hope this helps!
Q: What is the maximum stimulus payment that I can receive?
A: The maximum stimulus payment is $1,200 per adult and $500 per dependent child eligible for the child tax credit.
Q: Who qualifies for the child tax credit?
A: A legal dependent under the age of 17 that is a US citizen, nationals, or legal aliens.
Q: Can someone that is claimed as a dependent receive a stimulus check?
A: Unfortunately, nobody, regardless of age, can be claimed as a dependent and collect a stimulus payment.
Q: What are the income limits for collecting a stimulus payment?
A: If your filing status is single, you will receive the full payment if your adjusted gross income is under $75,000. Your payment will reduce 5 cents for every dollar between $75,000 and $99,000. You will not receive any payment if your adjusted gross income is above $99,000. Those AGI limits double for married couples. Those income limits are $112,500 and $136,500 for the Head of Household status.
Q: What tax year will they use to calculate my tax payment?
A: The short answer here is that it depends. If you filed your 2019 taxes by the time the payments were calculated, they would use that tax year. If not, they will use 2018. If you have not filed 2018 or 2019, it is possible to still receive a credit on your 2020 return (if you meet the income requirements).
Q: How will I receive my stimulus payment?
A: If you received a federal tax refund for the year used to calculate your payment, and you entered direct deposit information with your return, it is likely you will receive it via direct deposit. Otherwise, it is likely you will receive a check.
I hope these questions and answers help ease some of your minds during this time. If I can be of any assistance, I would be happy to try and help!