The House of Representatives has just passed the $2 trillion Coronavirus Stimulus Bill. It passed the senate on Wednesday and will now go in front of President Trump for his signature.
Single filers making less than $75,000 will get $1,200 plus $500 for each dependent child under 17. Married filers making less than $150,000 will get $2,400 plus $500 for each dependent child under 17. That amount is phased out at a rate of $5 per $100 of income until a single filer makes $99,000 or a married couple without children makes $198,000. The phaseout with children will be $10,000 higher per child, so a couple with 2 kids will phaseout completely at $218,000 and with 4 kids at $238,000.
Some 83% of Americans will qualify for a stimulus check.
Once you reach 17 you can get your own $1,200 check if you file your own tax return and aren’t claimed as a dependent on someone else’s return.
The stimulus payment is not taxable.
The IRS will not require enrollment and will automatically send out checks or direct deposits based on your 2019 tax return income, or your 2018 tax return if you have not yet filed for 2019 return.
It’s worth noting that the income test is actually based on the 2020 tax year, but the Wall Street Journal reports that you won’t need to pay back money if you make too much in 2020.
On the flip side, if you have more dependent children in 2020 than you did on your 2018 or 2019 return, you can still get the stimulus credit for them when you file your 2020 return. Plus if your 2020 income drops from 2019, you can get an additional credit based on your lower income when you file your 2020 return in 2021.