Is the stimulus package based on adjusted gross income? This is the question of many Americans as the Congress passes a $2 trillion stimulus bill to counter the effects of the coronavirus pandemic in the U.S.
Aside from asking if the stimulus packages is based on adjusted gross income, many want to know who qualifies, how much each individual or family will receive, and when they can receive it.
Some Americans will receive checks from the government to help them make adjustments due to the economic damages brought by the coronavirus crisis.
Individuals can expect a payment of $1,200 each. There would be $2,400 for those who are married and file income taxes together, with $500 included per child.
There are certain qualifications that must be met in order to receive payments, based on one's adjusted gross income in the latest tax returns.
Eligibility
If someone earns more than $75,000 as an individual, $112,500 as the head of household or $150,000 when married and filing jointly, the amount of the checks begins to be reduced.
This reduction will be $5 for every $100 exceeding those thresholds. It discontinues at $99,000 in income for individuals, $146,500 for household head filers with one child, and $198,000 for joint filers without children.
Those without income or depend solely on non-taxable government benefit programs like Supplemental Security Income benefits, or SSI, from Social Security can still qualify for a check.
One should have a valid Social Security number in order to get the funds.
For those who have not filed a 2019 return, the government will consider their 2018 information if it has it. Other documents that may be considered are a 2019 Social Security benefit statement, or Form SSA-1099, or the Social Security Equivalent Benefit Statement, or Form RRB-1099.
Some individuals are specifically excluded from receiving payments. That includes nonresident aliens, individuals whose deductions can go to another taxpayer, and estates or trusts.
Other eligible individuals are self-employed workers, those looking for part-time work, and workers who resigned from their job or are not able to reach their place of work due to COVID-19.
