Is the coronavirus stimulus check for U.S. citizens only?

Are you wondering if you qualify for the stimulus check from the new COVID-19 stimulus bill that was signed on March 23, 2020? The economic stimulus increased unemployment benefits and provides a round of payments to qualified Americans and their children, among other things.

In this article, we will answer the most common questions our readership may have related to the stimulus bill.

Q: Who qualifies for the relief?

In most articles, the wording is left at “Americans”, as in “Americans” earning a certain amount of money (below a threshold) qualify for the stimulus check. But, what does “Americans” breakdown to mean? Does it include permanent residents? Or is it for citizens only?

A: Any U.S. resident who pays taxes and qualifies based on income restrictions will receive the relief check, including retirees and people on disability.

Single taxpayers will need to have an Adjusted Gross Income (AGI) of $75,000 or less, married taxpayers an AGI of $150,000, and head of household and AGI of $112,500). The full amount of the coronavirus economic relief check is reduced by $5 for every $100 that is over the income limit. Reduced relief checks will be prorated to single taxpayers earning up to $99,000, married taxpayers earning up to $198,000, and head of household taxpayers earning up to $136,500.

Note: Your AGI can be found on Line 8b of your 2019 Form 1040, U.S. Income Tax Return.

The taxpayer cannot be claimed as a dependent by another taxpayer. Taxpayers with child dependents will receive an additional $500 per child (under age 17).

The Washington Post has a handy stimulus check calculator available for use, and states that if you have yet to file your 2019 income tax return, the Internal Revenue Service (IRS) will use your 2018 tax return information.

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Q: What if my income was above the threshold last year, but a lot less this year due to the coronavirus?

A: The IRS will adjust the credit when you file your 2020 individual income taxes.

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Q: Do I have to apply somewhere to receive the payment?

A: No, you do not. The relief payments will be given out based on existing records. If you have not filed 2018 or 2019 tax returns, you may have to file them.

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Q: How will we receive the money?

A: Taxpayers who filed taxes and requested potential refunds to be deposited via direct deposit will have the money deposited to their account directly. For taxpayers who requested a check refund, or who have not requested a refund, the stimulus check will be mailed to the address on record.

Low-income tax payers who receive Social Security payments and are not required to file a tax return, will receive their stimulus check the same way they receive their social security income.

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Q: When will the money come?

A: U.S. Department of Treasury Secretary Mnuchin, in an interview with CNBC, announced first payments will be dispatched around the week of April 6, 2020.

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Q: Will I receive the stimulus check every month until our economy is back on track?

A: The CARES Act covers a single round of relief, meaning there will be one payment only.

Q: Does the coronavirus stimulus check relief count as taxable income for 2020 taxes?

A: No, it does not. It’s technically an advanced tax credit.

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Q: What if I’m an eligible American currently staying/living abroad? Do I still get a payment?

A: Yes, as long as you filed your 2018 or 2019 taxes and qualify based on it.

If you have further questions regarding your eligibility for the stimulus bill relief check, your immigration benefits, or how to navigate your small business during these times, contact our office for additional support.