We have now been under shelter-at-home orders for the better part of six weeks. Congress has passed some legislation to try to assist those who are now struggling with job losses, dealing with an inability to pay the rent or the mortgage, and handling the dramatic downturn of the economy. The most significant for individuals is the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which was designed in part to give each individual taxpayer $1,200 more in their bank account.
But, has that $1,200 check arrived for you yet?
Many individuals were pleased to find the $1,200 stimulus check directly deposited into their bank accounts on April 15. However, there is a good chunk of our country’s population that has not received the stimulus money, even though they are eligible.
In this article, we will discuss some details about what is going on with regard to the stimulus checks and what you can expect if you have not received a check yourself yet.
If, after reading this article, you have not received your stimulus check and you have additional questions about your tax situation this year, we invite you to contact The Law Office of Mary King, P.L. We are tax service law firm for individuals in Florida, and we are ready to provide you with quality legal advice on any individual tax issue. Call today at 941-906-7585, or fill out our contact form. We are here to help you.
What Do I Need to Know About My Stimulus Payment?
As you may know, Congress passed the CARES Act at the beginning of April 2020. The Act provides for a stimulus payment, which the Internal Revenue Service (IRS) is calling an “economic impact payment,” of $1,200 to every American who makes less than $75,000, based on 2018 and 2019 tax returns. Married couples making less than $150,000 will receive $2,400.
For those individuals who make between $75,000 and $99,000 (or married couples making between $150,000 and $198,000) they will receive a reduced amount of stimulus money, going down on a sliding scale. Those taxpayers who make more than $99,000 (or $198,000 for married couples) are not eligible for a stimulus check.
Thus, if you have yet to receive a stimulus payment, you should first check to see if you are eligible based upon those income thresholds. But, if you know that you reported less income in your 2018 and 2019 tax returns, then read on.
Should I Worry That I Have Not Received a Stimulus Check Yet?
The short answer to that question is “No.” You may be surprised to learn that about one-third of eligible Americans have not received their stimulus check yet. There are 150 million Americans who are eligible for the stimulus payment. Yet, 60 million of those taxpayers have yet to receive their payment.
Based on recent reports, the IRS starting sending money to those that the IRS could reach quickest. That included anyone who had direct deposit information saved with the IRS already because they were due a refund for either the 2018 or 2019 tax year.
In addition, those who did not have their direct deposit information with the IRS began receiving paper checks. The IRS is sending the money by priority of giving the money to lower-income individuals first.
Who Is Next In the IRS Line?
The paper checks to non-direct-deposit individuals began the week of April 20, 2020. This coming week, at or around the week of May 4, 2020, payments will begin to be delivered to the millions of those who receive Social Security and who do not have to file tax returns. If everything goes according to plan, those individuals will receive the stimulus payment in a manner that they typically receive their Social Security benefits, which is by mail, or direct deposit to a bank account or debit card.
In addition, those who receive Supplemental Security Income and low-income veterans who receive a pension from the Department of Veterans Affairs (and also do not need to file a tax return) should be receiving their stimulus payments shortly.
How Long Do I Need to Wait?
As you can see, the IRS is pushing the stimulus money out in phases. While there is some good news that 90 million Americans have already received a payment, many are still waiting and could be waiting for another few weeks if not months.
The U.S. Treasury can process about 5 million checks per week. So, to get through 60 million payments, it could take a few months.
This might be distressing news for those who really could use some financial assistance just about now. A good way to possibly get your direct deposit information to the IRS, thereby triggering an earlier payment could be to file your 2019 tax returns as soon as possible. To do that you may want to call a tax service law firm for individuals in Florida, such as the Law Office of Mary E. King.
Get the Assistance of a Tax Service Law Firm for Individuals in Florida – Mary E. King, Esq.
If you have questions about COVID-19 legislation, are struggling with back taxes, or if you are a business that needs to plan tax payments throughout the year, then you need the help of an attorney who has experience with tax planning attorney in Florida.
The Law Office of Mary King P.L. can help you with all of your business-focused tax needs. We are an experienced tax service law firm for individuals in Florida, and we offer complete services in all areas from tax implications of alimony to planning the most efficient tax strategy for individuals and businesses. We are proud of the experience and resources we have to provide to our clients.
Call our tax service law firm for individuals in Florida today to schedule an initial consultation. With years of experience, the Law Office of Mary E. King can make sure that your tax issues are resolved in your favor. Fill out our online contact form, or call us at 941-906-7585.