Coronavirus Relief – Update About $1,200 Check
These are the details (to-date) regarding the awaited $1200 relief check, expected by many from the Senate’s latest proposed Coronavirus Stimulus Plan. The proposal is a latest effort to assist citizens and legal residents in the United States during this time of national economic disaster and hardship.
The bill claims to give $1,200 payment to individuals, $2,400 to married couples and $500 per child. You should carefully consider this relief, as the term “payment” could be misleading to some. If passed, this relief could be made available in the form of tax refund or tax credit.
• It also claims that eligibility for those checks would begin to phase out, based on that person’s income, as reported on their 2018 tax returns.
• This phase-out begins at $75,000 of adjusted gross income for individuals, or $150,000 for married couples that filed jointly.
• This also means that anyone that does not file tax returns, or did not for 2018, is not eligible.
• Anyone that took taxable retirement distributions of more than the phase-out amounts are not eligible. These distributions would have been taken in 2018, in some cases more than 2 years ago.
• The proposal currently calls for giving that money as a credit against your taxes. This means the proposed relief might not be a check to be sent now, but instead an increased tax refund. For those who would not receive a tax refund this year, the relief only reduces their amount of tax due.
• This relief is limited to the amount of your 2018 tax liability, up to $1,200. For those eligible for relief, but who had a 2018 tax liability of less than $600, the eligible amount is only $600.
• No firm timeline has yet been proposed for the execution and delivery of this financial assistance.
The bill is very much still in negotiation, with pressure upon Congress to afford more direct, immediate benefit to working people. We will update you as more negotiations and proposals are made public.