Coronavirus Stimulus Package: When You Should Receive Your Payment
- The U.S. federal government is to release a $2 trillion stimulus bill to supplement the needs of qualifying Americans who are suffering financially due to the pandemic.
- A stimulus check will be sent to all qualified United States taxpayers.
- If you are unbanked, meaning you do not have a bank account, you will receive a paper check instead of a direct deposit.
The spread of the highly contagious COVID-19 has caused a worldwide shutdown and shelter-in-place, which has resulted in a decline in the global economy. Particularly in America, more than 17 million Americans are filing for unemployment due to businesses having to shut down or cut costs. With many things still uncertain, the high rate of unemployment and the safety, economic, and health concerns for families and individuals is a top priority for the federal government.
The economic decline has led the federal government to release a $2 trillion stimulus bill to supplement the needs of qualifying Americans who may be suffering financially. Here's what the stimulus bill, also known as the "recovery rebate," means for you.
What is a stimulus check?
A stimulus check is sent to all United States taxpayers and those who qualify for unemployment and is meant to offset any monetary loss caused by the global pandemic. The maximum amount that will be distributed to individuals is $1,200, and for married couples is $2,400, with an extra $500 for each dependent child under the age of 17.
Who is exempt from the stimulus check?
Those not included in the stimulus package are:
- Children who are 16 years or older.
- College students between the ages of 18 to 24.
- Adults who can be claimed as dependents on someone else's tax form (which includes many college students).
- Individuals who earn more than $99,000 annually.
- Married couples earn more than $198,000 annually.
- People who haven't filed their 2018 and 2019 tax returns.
- Non-US citizens.
Receiving your Stimulus Check
If you have direct deposit, the stimulus checks will be distributed as early as April 9, 2020. As many as 70 million Americans should expect to receive their stimulus check by April 15, 2020, if they entered their direct deposit on their tax forms. Americans who are on Social Security retirement or receive disability benefits will also receive a stimulus check, even if they haven't filed a recent tax return.
Stimulus Checks: Direct Deposit or Paper Checks
Paper checks will be distributed by April 24, and the last issued paper checks will be mailed out by September 11.
There is a hierarchy of paper checks. Those who have less than $10,000 will be issued their checks first in late April.
To see the stimulus paper check hierarchy, click here.
Stimulus Check Impact on your Tax Refund
The stimulus check will not affect your tax return for the year or the next. The stimulus check is a tax credit, meaning you will get your check and it will not affect your tax return even if you owe taxes.
The stimulus check is non-taxable, which means you cannot include it in your 2020 income when you file your tax forms in 2021.
Relief Package and Student Loans
Yes, the relief package is deferring federal student loan payments until after September 30, 2020.
If you would like more information about COVID-19 financial resources and recommendations, click here.