I have received questions about the stimulus package. Here is the information I found and my best interpretation.

Individual share of the package will be based on your 2019 tax return. If your return has not yet been filed, they will use the 2018 return. If a bank account is listed on the return, there should be a direct deposit to that account. If individuals do not have an account, a check will be issued which could take up to two months longer to receive. Another option that might be used is to issue a prepaid debit card with the money loaded on the card.

There are income limits to qualify. Adjusted gross income up to $75,000 for individuals, $150,000 for couples married filing joint. For those earning above the 75,000/150,000, payment amount is reduced by $5 for each $100. Singles/couples with no children get limits of $99,000/198,000.

People who don’t normally file returns will need to file for 2019 to receive part of the stimulus package.

If you don’t receive any money or think you should have gotten more, you can contact the IRS. There is another option, to claim a credit on your 2020 tax return that is due in 2021. That leads me to believe this money is non-taxable.

Parents of children born in 2020 won’t get a payment for that child now. However, assuming they qualify based on their 2020 income, they will get $500 added to their tax refund or subtracted from their income-tax bill when they file their 2020 tax returns in early 2021.

Pederson Tax Services