Have YOU Received Your Stimulus Check?
By Paul F Ciccarelli CFP®, CHFC®, CLU®
On June 3, the U.S. Treasury announced that it had delivered 159 million EIPs (Economic Impact Payments). Of the Economic Impact Payments, 120 million were sent by direct deposit, 35 million by check, and 4 million payments were made in the form of a pre-paid debit card.
There has been some uncertainty regarding the specifics of the EIP. We have narrowed down some of the details regarding the Economic Impact Payments.
How is your Payment determined?
Payment amounts vary based on income, filing status, and family size. If you filed a 2019 tax return, the IRS used information from it about you, your spouse, your income, filing status, and qualifying children to calculate. If you haven’t filed your 2019 return or it has not been processed yet, the IRS used the information from your 2018 return.
The Payment is not included in your gross income. Therefore, you will not include the Payment in your taxable income on your Federal income tax return or pay income tax on your Payment.
You are eligible to receive a stimulus check if:
· You are a single US resident and have an AGI under $99,000.
· You file as the head of a household (considered unmarried with at least one dependent) and earn less than $146,500.
· You file jointly without children and earn under $198,000.
· You are the parent of a child aged 16 or younger.
Those payment brackets are as follows:
- Eligible individuals will receive up to $1,200.
- Eligible married couples will receive up to $2,400.
- Eligible individuals will receive up to $500 for each qualifying child.
Payments are automatic for individuals who receive Social Security retirement, Disability (SSDI), Survivor Benefits, non-taxable veteran’s benefits. If you receive veteran’s disability compensation, a pension, or survivor benefits from the Department of Veterans Affairs, or your income level does not require you to file a tax return, then you need to submit information to the IRS to receive an Economic Impact Payment. The form can be found accessed at www.freefilefillableforms.com.
How You Will Receive Payment May Vary:
If you received a direct deposit of your refund based on your 2019 tax return (or 2018 tax return if you haven’t filed your 2019 tax return), the IRS has sent your Payment to the bank account provided on the most recent tax return. If you filed your 2019 or 2018 tax return but did not receive your refund by direct deposit, your Payment will be mailed to the address the IRS has on file.
If you receive an Economic Impact Payment debit card, it will arrive in a plain envelope from “Money Network Cardholder Services.” Please go to EIPcard.com for more information.
What to Do If You Have Not Received Your Payment:
If you received IRS Notice 1444 in the mail notifying you that payment has been made and you have not received your payment, you can request a payment trace by the IRS. If you file taxes and have not received your payment you should confirm that the information the IRS has for you is correct.
You can check on your Economic Impact Payment status HERE.
New details and information regarding the Economic Stimulus Package are being released every day. It may be beneficial to schedule some time to discuss any ongoing financial concerns with your advisor. Our team will continue to monitor the situation, and keep you informed.
Sources:
https://www.irs.gov/newsroom/economic-impact-payments-what-you-need-to-know
https://home.treasury.gov/news/press-releases/sm975
Investment advisory services offered through Ciccarelli Advisory Services, Inc., a registered investment adviser independent of FSC Securities Corporation. Securities and additional investment advisory services offered through FSC Securities Corporation, member FINRA/SIPC and a registered investment adviser. 9601 Tamiami Trail North, Naples, FL. 239-262-6577.
