COVID-19 Update: What We Want You To Know About Stimulus Checks
Along with roller-coaster market changes, some of us started to welcome stimulus payments into our bank accounts. You may or may not be one of the 80 million recipients of a stimulus payment from the government designed to help stimulate our economy during this challenging time.
If you are unsure whether you are going to receive a stimulus check, or aren’t sure of information the IRS has on file for you to receive the payment, please click here. The IRS also has an app available with this information, IRS2GO.
Once you have determined you are a recipient of a stimulus check, please have the following available in order to set up your information to have the check directly processed into your bank account:
You will need:
*Your adjusted gross income from your most recent tax return submitted
*The refund amount filed on your last tax return
*Bank account type, account number and routing number
You can check your current information on file, check on the status of and enter your information for the payment to be applied directly to your bank account. Please keep in mind, they are mailing checks in order of people with the lowest incomes first. The IRS updates their information once per day, so there is no need to check more frequently than once a day for updates. The IRS is experiencing significant delays on their website and is creating online “waiting rooms” to put people into while the site’s volume decreases.
If you have not filed a tax return for 2018 or 2019 and normally file a return, you must do so before you can be given information on your stimulus check status. What if you don’t normally file a tax return? Check here, for information for non-filers regarding stimulus payments.
If you are currently receiving Social Security Disability or Survivor Benefits, Railroad Retirement Benefits and do not file a tax return normally, there is no need for action on your part. You will be receiving an automatic $1,200.00 as either a direct deposit or paper check-the method as you would normally receive your benefits.
There a numerous questions some people have in regards to this process, please find most of the answers to your questions, here.
Please be advised, as we reported to you last week, there are numerous scams going around of people claiming to help you receive aid during this time. Please be diligent and do not give out personal information without verifying the source asking for the information. Never give information over the phone, via text or email, including social media platforms, to either the Social Security Administration or the IRS. If you aren’t sure, please feel free to contact us, to make sure you safeguard your personal information.
This money will not be counted as taxable income. There will be a special tax credit on your 2020 tax return when you file your tax return in 2021. The amount you receive in the form of a stimulus check is the amount you will be entering as a tax credit, therefore canceling out the stimulus check being counted as income. If you qualify to receive it (based on your 2018, 2019 tax returns), any money that isn’t needed to pay down your tax liability is refunded to you in the form of a stimulus check. Since 2020 isn’t over yet, the IRS is using your past returns for which to base your qualification factor. If at the end of 2020 you should have received a payment and did not, you will receive one when you file your 2020 taxes from this special tax credit. If you are worried you received too much based on the final 2020 numbers on your tax return, you will not be required to pay it back. The IRS is banking on the fact that incomes don’t usually fluctuate drastically from year to year. These payments have no bearing on your 2019 tax refund owed to you. If you owe taxes to the IRS for prior years, this is not taken into account when your stimulus payment is calculated.
Are you a math nut like me? I love a great calculation! Let’s give it a shot, see if you can correctly calculate your stimulus payment!
I hope this update finds you safe and healthy! Feel free to reach out to schedule a meeting to discuss your questions or concerns. If you have a family member, friend or co-worker with questions-please remember as a value-added client service I offer you, I am available as a sounding board for them. We are all in this together and while we won’t be able to flip the switch and have all the lights magically come back on when this is over, we can certainly help people in their endeavor of changing some old bulbs in their house and replacing them with new and improved, brighter LED lights! We can help ensure accumulated assets are still effectively working and if not, change them so they ensure all of us are free to pursue our goals and what is most important to us!
Source: IRS.gov, taxact.com were accessed on 4/20/2020. Cornerstone Financial Group are not tax advisors. Consult your tax professional for tax related advice. Craig Watkins is an investment adviser representative of, and advisory services are offered through, USA Financial Securities Corp., A Registered Investment Adviser located at 6020 E. Fulton St., Ada, MI 49301. Craig Watkins is also a registered representative of USA Financial Securities Member FINRA/SIPC. Cornerstone Financial Group is not affiliated with USA Financial Securities. Craig CA license #0591010