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  • 2020 Stimulus

    Cash Payments to Individuals

    According to the new law, the intention is to give most adult Americans a $1,200 stimulus check to encourage them to stay home and/or to pay their bills during these difficult times.  The check that you may receive is an advance on a tax credit for your 2020 tax return due April 15, 2021. The tax credit will be based on the 2020 income.  Here is how it works:

    • If you are an individual that makes $75,000 or less in 2020 you will get the full $1200 refundable credit.  There will be a $5 reduction of the credit for every additional $100 you make above the $75,000; the phaseout will totally reduce the credit at $99,000.
    • If you are married filing jointly in 2020 and make $150,000 or less, you will get the full $2,400 refundable tax credit.  There will be a $5 reduction of the credit for every additional $100 you make above the $150,000; the phaseout will totally reduce the credit at $198,000.
    • If you are Head of Household in 2020 and make $112,500 or less, you will get the full $1,400 refundable credit.  The phaseout of $5 per $100 will reduce your credit.
    • In addition, there will be an additional $500 per child under the age of 18 as of 12/31/2020 added to the credit.

    Note:  The amount of the payment to be advanced during April 2020, is going to be based on your 2018 or 2019's tax return information.  BUT, since it is considered to be a refundable tax credit for the year 2020; your final income for 2020 will determine real eligibility; so if in 2020 your income is higher, YOU MAY HAVE TO PAY BACK ANY ADVANCE THAT YOU RECEIVED.  On the other side, if you do not get the money upfront, but still qualify because of income levels, you will get it as a tax refund or reduction of your 2020 income tax liability. 


    03/29/2020





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