Dear Clients of SKJ & Company, P.S.:
As many of clients are already aware from the media, US Government is issuing special stimulus payment.
The stimulus payments are sent automatically using taxpayer record. There is no need to make requests. The payments are planned to be disbursed during the 2nd week of April. However, it may be delayed to the end of the month.
The payment amounts will be based on your income and filing status on your tax return.
If Single or Married Filing Separate
$1,200 for Gross income $75,000 or less
Payment reduced by $5 for every $100 above $75,000
Full phaseout at $99,000.
If Married Filing Jointly
$2,400 for Gross income $150,000 or less
Payment reduced by $5 for every $100 above $150,000
Full phaseout at $198,000
If Head of Household
$1,200 for Gross income $112,500 or less
Payment reduced by $5 for every $100 above $112,500
Full phaseout at $136,500
For all filing status, additional $500 will be paid per each child
Even if you did not file tax returns, you are eligible for the payment if you receive SSA benefit
The information will be based on the following:
Your income and filing status on 2019 tax return, if filed.
If 2019 tax return is not yet filed, 2018 tax return information will be used.
If you were not required to file, your information on SSA Benefit statements will be used.
The payment will be delivered as following:
By direct deposit to the bank where you received last tax refund, or made ACH tax payment
By check mailed to the address on your last tax return.
The payment is not a taxable income.
According to Washington Post, the change in income between 2018 and 2020 will NOT trigger repayment of these payments.
SKJ & Company, P.S.
Seke Jung, CPA