How Much Will You Receive in the Stimulus Check?

Mar 31

Mar 31 How Much Will You Receive in the Stimulus Check?

The $2 trillion Stimulus Package to aid the nation due to the situation caused by the novel coronavirus (COVID-19) has been passed - which means that you’ll be getting your stimulus check within the next 3 weeks, hopefully. It is estimated that 95% of the US population will benefit from the stimulus checks, meaning they will receive some monetary funds.

Do you qualify?

In order to calculate how much of the $1200 stimulus check you will receive, the IRS will look at your 2019 tax returns’ adjusted gross income, or AGI - and if you have not filed your 2019 taxes, they will look at your 2018’s numbers. The AGI can be found in your 2019 form 1040 line 8b, and in your 2018 form 1040 line 7 - the links will take you to the 1040 forms from irs.gov.

“Phase Out” Income Range

Now that you have your AGI, you will want to take a look at the phase out based on your AGI:
1. $1,200 check with an AGI of $75,000 or less for single filers, fully phased out at $99,000
2. $2,400 check with an AGI of $150,000 or less for joint filers, fully phased out at $198,000
3. $500 per child will be added on top of the $1200 or $2400 check

The phasing begins when your AGI is over the above guidelines at a rate of $5 deduction from your check for every $100 made in your AGI. So for a single filer:
1. $1,200 check with an AGI of $75,000 or less
2. $1,150 check with an AGI of $76,000
3. $1,000 check with an AGI of $79,000

For a more direct comparison, check TurboTax’s Calculator here.

When and How Will the Funds be Distributed?

As of writing this article, the IRS states that the funds will be distributed in 3 weeks, and will either be direct deposited or a physical check, depending on how you received your tax refund. Keep in mind that the stimulus check is considered a rebate instead of an income, so the stimulus check is not taxable.

Conclusion

We hope that you will get your funds soon and it helps with your situation. In the next article, we will discuss what you should and shouldn’t be spending your stimulus check for - just our advice so keep an open mind. Stay safe out there, wash your hands, and practice social distancing.