How Much Will You Receive For Your Stimulus Payment?

Well, it depends on multiple factors.

1. Filing Status and Adjusted Gross Income (AGI)

• • Single Filing Status Taxpayers will receive $1,200 if your AGI is not above $75,000 and fully phases out at $99,000 with no children.
  • Head of Household Filing Status Taxpayers will receive $1,200 if your AGI is not above $112,500 and an additional $500 per qualifying child under the age of 17.
  • Married Filing Joint Filing Status Taxpayers will receive $2,400 if your AGI is not above $150,000 and an additional $500 per qualifying child under the age of 17. If a married couple has no children, then the stimulus payments fully phases out at $198,000.

2. 2018 or 2019 Tax Return

• • • The Internal Revenue Service (IRS) will first look for your 2019 tax return for computing the payment. If you have not filed your 2019 tax return, then the IRS will use your 2018 tax return.
    • So, the question becomes – Should you file your 2019 tax return? Again, that depends on your situation.
      • a) Were you claimed as a dependent on some else’s tax return in 2018? If so and now you are eligible to claim yourself then file your 2019 tax return quickly.
        b) If your income in 2019 is above the filing status thresholds mentioned above, then wait to file your 2019 tax return until you receive your stimulus payment.
        c) If you child turned 17 in 2019 then you might want to wait to file your 2019 tax return since you will receive the additional $500 per child under the age of 17.
        d) On the other hand, if you have a qualifying child or an additional qualifying child in 2019, then file your tax return as quickly as possible.

       

Keep in mind, the stimulus payment is intended to be an advanced payment against an actual credit you will compute on your 2020 tax return. However, it appears if your advance payment is less than what you’re owed when you compute your 2020 return, you’ll get the excess as a credit on that return. But if your advance credit is greater than what you’re actually owed come the filing of your 2020 return, it appears you will not need to pay back or recognize it as income.

If you have any questions concerning the stimulus payment, please feel free to contact us at 630.523.5762.