When President Donald Trump signed the Coronavirus Aid, Relief, and Economic Security Act (or CARES Act) into law on March 27th 2020, he initiated the largest ($1.8 trillion) stimulus package emergency aid in the American history. This was meant to assist millions of Americans affected by the Coronavirus pandemic. By law, the Internal Revenue Service (IRS) is mandated to automatically send your Economic Impact Payment (EIP) to your bank account. But that is just the beginning of the Coronavirus stimulus!
In addition, the IRS was to use your 2018 or 2019 tax return to determine whether you are entitled to the economic impact payment, and the amount to be paid. However, the biggest concern to millions of American is, who is eligible for this economic relief package?
Here’s who qualifies, the amounts, and the process of getting the economic relief package.
US Citizens And US Resident Aliens
US citizens and US resident aliens will all receive the economic impact payment of $1,200 for individuals or head of household filers, $2400 for married filing jointly if they do not depend on another taxpayer and have a work eligible social security number with gross income up to:
- $75,000 for individuals if their filing status was single or married filing separately.
- $112,500 for head of household filers.
- $150,000 for married couples filing joint returns.
Taxpayers will receive a reduced payment if their adjusted gross income (AGI) is between:
- $75,000 and $99,000 if their filing status was single or married filing separately.
- 112,500 and $136,500 for head of household.
- $150,000 and $198,000 if their filing status was married filing jointly.
The amount of the reduced payment will be based on taxpayers specific AGI. The amount will be channeled direct to their bank accounts. In addition, those families with children below 17 years will get an additional $500 for each kid. Talk about awesome Coronavirus stimulus!
Social Security Disability Insurance (SSDI) Beneficiaries
Economic impact payment will also be sent automatically to Social Security Disability Insurance recipients who are not required by law to file tax returns. The Internal Revenue Services will use SSA-1099 benefits statements that is sent every January to the beneficiaries to send the payments of $1200.
Supplemental Security Income (SSI) Beneficiaries
According to Social Security Administration, SSI recipients without dependent children were to receive their $1200 economic impact package automatically without having to file any additional forms. The Treasury Department assured the SSI recipients they will receive payment just like their normal benefits, either through paper check, direct depositor, and direct express debit card.
Veterans Affairs (VA) Compensation and Pension (C&P) / Rail Retirees
According to the Internal Revenue Service, beneficiaries who receive compensation and pensions (C&P) benefits from the Department of Veterans Affairs will receive their $1200 economic impact payment automatically whether they have filed tax returns for 2018/2019 or not. They payment is expected in the month of May 2020, and is a wonderful Coronavirus stimulus package.
No Income / Little Income Earners
People with no income or little income earners and did not receive any of the federal benefits such as SSI, they are also eligible for a $1200 economic relief payment. They are required to register with the Non filer tool on Internal Revenue Service in order to receive the payments.
Beneficiaries who receive social security retirement, social security disability insurance, supplementary security income, and railroad retirement benefits who have dependent children aged 17 years and below and qualifies for economic impact package should complete the Internal Revenue Service online form for non-fliers to get an additional $500 per child.