Stimulus Checks- Everything you need to know

Apart from our yearly tax returns, the IRS also awards the public with Stimulus checks. A stimulus check is a check sent to a taxpayer by the U.S. government. Stimulus checks are intended to stimulate the economy by providing consumers with some spending money. When taxpayers spend this money, it drives revenues at retailers and manufacturers and thus spurs the economy as the taxpayers too enjoy the benefits.
·Who is Eligible for a Stimulus Check?
1.The legislation gives single adults who reported adjusted gross income of $75,000 or less on their 2019 tax returns a one-time check for $1,200.
2.Married couples who filed jointly will receive $2,400.
3.Families will get an additional $500 for each child under 17.
However, the above mentioned points serve as the base for a stimulus check. The size of the check will decrease based on these terms-
1.Income for individuals who earned more than $75,000 based on their federal tax return for the previous year.
2.The payment for individuals will shrink by $5 for every $100 earned over $75,000.
3.For couples who filed jointly, the reduction will start once they earn more than $150,000; for heads of household, at $112,500.
Individuals who earned more than $99,000 and couples who earned more than $198,000 jointly will not receive checks. The income cut-off for heads of households is $136,500.
·Who is Eligible for a Second Stimulus Check?
1.Have a Social Security number.
Unlike in the first round of stimulus payments, households in which one person has a Social Security number and another uses an Individual Taxpayer Identification Number (ITIN) are eligible for a $600 payment, plus $600 payments for any children who have Social Security numbers.
This is a retroactive change, meaning these households should be able to claim money from the first round of stimulus checks <www.businessinsider.com/personal-finance/claim-stimulus-check-on-2020-taxes-2020-12> on their 2020 tax return.
2.Filed taxes in 2019.
3.Didn’t file taxes in 2019, but meet other eligibility criteria.
4.Don’t earn enough to file but receive federal benefits payments, including Social Security retirement or disability benefits, Supplemental Security Income (SSI), or Veterans Affairs benefits.
5.Don’t earn enough to file and don’t receive federal benefits, but used the IRS non-filers tool <www.irs.gov/coronavirus/non-filers-enter-payment-info-here> to input your bank or mailing information.
6.Earned less than <www.businessinsider.com/personal-finance/stimulus-check-income-limit-second-round-2020-12>-
– $87,000 for single filers,
-$124,500 for heads of household, or
-$174,000 for married filers
Individuals earning more than $75,000 and less than $87,000 will receive a reduced payment, as will couples earning more than $150,000 and less than $174,000.
7.Are an adult who is not claimed as a dependent by anyone else.
·How to check my Stimulus check status?
You can use Get My Payment <sa.www4.irs.gov/irfof-wmsp/notice;jsessionid=YfNyUqMu5QXa9lVnBqxqJZKg.5c>to confirm that the IRS sent a first or second Stimulus Check and if your payment was sent as direct deposit or by mail.
As stimulus checks are highly dependent on the tax returns filed by the tax payers, it is essential to assure accuracy in your taxes filed. Professional services like the ones provided by National Tax Preparers of America ensure correctness in your taxes, in turn allowing you to enjoy the benefits like Stimulus checks.