What can you expect from stimulus plan? Questions on relief bill answered
President Donald Trump on Friday signed the
The legislation sets the wheels in motion for people to get money from the federal government.
Since our nation's leaders first began talks of a stimulus plan, an array of questions continue from people across the country. Everyone's story is unique, but every individual question essentially boils down to one: "What does this mean for me?
How much will stimulus payments be?
For the majority of single adults, the answer is $1,200, if you make than $75,000 per year or less. There's $500 payments extra for every child in the household 16 and younger.
Is the amount I could receive based on my income?
Yes, if you make $75,000 per year or less or if you and your spouse file as a couple and make less than $150,000 per year, you qualify to receive the full amount. A couple making less than $150,000 could expect $2,400, or $1,200 each. If you make more individually, or as a couple, amounts vary. Those earning $99,000 or more as a single person or $198,000 as a couple will not receive payments.
What about 17 and 18-year-olds and young adults in college?
As written, 17 and 18-year-olds, college students aged 19-23 and adults who can be claimed as dependents are ineligible to receive a payment.
What year of income is this based on?
The amount you could expect from the stimulus depends on your 2019 tax return if you've already filed for last year and your 2018 return if you haven't yet done so. The filing deadline for federal and state taxes is extended to July. If you haven't filed taxes for 2018, you can use a 2019 Social Security statement showing your income.
How would I receive my money?
The payment will be deposited directly into your bank account if the IRS has done that for you in the past. If payments have gone out, but you didn't receive yours, you may get a notice in the mail. You'll then have to contact the IRS.
Will the unemployed and those on disability or those who receive social security receive a payment?
Yes. If your earnings qualify you, you will receive a payment.
How do you show your earnings if you receive social security and haven't filed taxes?
The government will use your social-security-earnings statement instead of your tax return to confirm your income and eligibility to receive stimulus money.
When can you expect payment?
The secretary of the treasury says payments should go out within three weeks. With that said, it took a few months for checks to go out during the 2008 recession. But today, more people file their taxes electronically and it's expected that those who use direct deposit for refunds will get their payments faster.
Will I have to pay taxes on the stimulus payment?
No. The payment is considered a refundable tax credit, which means it's like a refund you're getting in advance. That doesn't affect your normal tax refund for 2020. That's according to Forbes who reports, "You won't lose out on your expected tax refund for 2020 with the check."
Another big stimulus-related question concerns the extension of unemployment benefits. What if you've been on unemployment already, but your benefits ran out?
As written, you can reapply to receive the additional benefits by contacting the Kansas Department of Labor online: