Stimulus Payments 2020
The Cares Act has been signed into law and contains many complexities. Below is a summary of the stimulus payments portion of the Act intended to help taxpayers in this time of need.
Every individual will receive a $1,200 stimulus payment sometime between now and the end of the year. If you are married filing joint you will receive $2,400. For each dependent claimed that is under 17 (at year end) the payment will be increased by $500 per dependent. Unfortunately dependents over 17 years old do not get a stimulus payment on either their parents return or their own. Only in circumstances when they have provided more than half of their own support and file their tax return claiming their own dependency exemption.
Limitations apply if your adjusted gross income exceeds $75,000 or $150,000 if you file married filing jointly. The IRS will use your 2019 tax return to assess or if it isn't filed yet then the 2018 return will be used. There has been discussion of holding back on filing your 2019 tax return if you are on the cusp of these numbers. The 2020 individual tax return will even up these payments if they are inaccurate. The word is, if the payment was too high, there will be no repayment requirements.
The details are still coming out and updates can be found here:
