All the information here regarding the Government stimulus check was taken from the Motley Fool website and authored by Dan Caplinger.
- Each eligible adult will receive up to $1,200 from the government.
- For every child in a given household, the amount of the total check would go up by $500.
- However, there are income limits on receiving the stimulus check. If your adjusted gross income is less than $75,000 for single filers and $150,000 for joint filers, then you’ll get the full amount. For every $100 you earn above those limits, though, the payment drops by $5. That means that for those with no children and income levels above $99,000 for singles and $198,000 for joint filers, no stimulus check would come. Those with incomes between those levels would receive a reduced stimulus check payment.
Some of the logistical details aren’t yet entirely pinned down, but one aspect that could cause considerable confusion is in determining income for purposes of the legislation. In an effort to get the checks out as quickly as possible, the federal government apparently intends to use 2018 reported income as filed on federal tax returns in determining eligibility. However, some believe that the final legislation could treat the payments as an advance credit that will be verified on 2020 tax returns. That raises the question of whether taxpayers will have to establish their eligibility again based on 2020 income levels — and potentially have to pay back their stimulus checks if their income rose between 2018 and 2020.
There’s also some uncertainty about how quickly Americans should expect to receive their cash. Treasury Secretary Steven Mnuchin has assured the public that he intends to try to get checks out within two weeks.
However, many are skeptical about how quickly the government can do the necessary legwork to get money out to Americans. Because of the income-based eligibility limits, the Internal Revenue Service will have to get involved in cross-checking who should get a check and who shouldn’t. With IRS staffing already at reduced levels and also facing coronavirus-related pressures, it could be more difficult than usual to fast-track sending stimulus checks.