Bill officially passed today.
The Coronavirus Aid, Relief and Economic Security Act, which President Donald Trump signed into law Friday, says taxpayers making up to $75,000 in adjusted gross income will receive $1,200 checks, and $500 for each child. The same rules apply for married couples who file returns under $150,000.
Above that threshold, the money starts to phase out.
The rebate decreases by $5 for every $100 by which a taxpayer exceeds the threshold, according to an analysis from the office of Sen. Charles Grassley of Iowa, whose Republican Party controls the chamber. (The bill unanimously passed the Senate on Wednesday and it passed the Democrat-controlled House of Representatives in a voice vote on Friday.)
For example, if an individual had an adjusted gross income of $76,000, he or she would receive a $1,150 check. The money from the “recovery rebate” does not count as taxable income, a Republican Finance Committee aide said Wednesday.
The earnings limit is $146,500 for people who file their taxes as “head of household.” The head of household status means a person is unmarried, paying for more than half of a household’s expenses and claiming at least one dependent.
People making over $99,000 and married couples making above $198,000 will not be receiving the payments, according to an analysis of the bill released earlier this week.
Treasury Secretary Steve Mnuchin said Wednesday the stimulus checks would come to many Americans within three weeks. Other commentators have said it may take longer.
Approximately 140 million households will receive a stimulus check, according to the Tax Foundation, a right-leaning think tank. The average check will come to $1,523 according to its calculations.
I think there will be a lot of logistics issues with getting 140 million households this money in a timely manner. They will first be using 2018 and 2019 tax returns for people's addresses to send checks. If you signed up for direct deposit for a refund during that time you will get the money automatically deposited into your account.
If you don't have direct deposit on file it will be mailed to you. And if you didn't file in 2018 and 2019 yet this video does a good job of telling you your options and what you can do to ensure they know where to send the money. Also if you are currently receiving social security benefits they will directly deposit the stimulus into your account automatically.