How will the coronavirus stimulus bill affect you?
Last month, the U.S. government passed the largest stimulus bill in history—the $2.2 trillion CARES Act (Coronavirus Aid, Relief, and Economic Security). One of the key features of the bill is that “economic impact payments” will be distributed to most adults. However, many people have been left wondering how much they will get and when and how they will receive their payments.
How much will you get?
- Single adults making $75,000 and below will receive a payment of $1,200.
- Married couples making $150,000 and below will receive $2,400.
- Individuals and couples will also receive $500 for each child under the age of 17.
- Payments scale down for individuals making over $75,000, and the income limit to receive any payment is $99,000 ($198,000 for couples).
- If you file taxes as “head of household”—meaning you are unmarried but have dependents and pay more than half of their household expenses—you will receive $1,200 if your income is $112,500 or below.
The IRS is handling these payments, and they will determine your income based on your 2019 tax returns (or your 2018 tax returns if you haven’t filed for 2019 yet). If your income was over the eligibility limit for 2019, but will be below the eligibility limit in 2020, you will receive a stimulus payment after you file your 2020 taxes next year.
What do you have to do?
You don’t need to do anything if you filed your tax returns for either 2019 or 2018. However, if you are required to file a tax return and have not done so since at least 2018, you will need to file your taxes before you can receive your stimulus payment.
When and how will you receive your payment?
The bill was signed into law by the president on March 27th, and the treasury secretary said he wants the payments go out within 3 weeks. However, former IRS officials have speculated that this timeline might not be realistic, as previous stimulus payments took about 2 months to be distributed. Given the sense of urgency, sometime around the end of April or early May is a reasonable estimate to receive your payment.
If you have previously received a tax refund through direct deposit, you will receive your stimulus payment through direct deposit to this account. If the IRS does not have your bank information on file, you may receive a check through the mail, which could take considerably longer than receiving a payment through direct deposit. The government is working on a web portal for people to sign up for direct deposit and is also considering sending pre-loaded debit cards to people who don’t have a bank account.
How can VIVA Finance help?
VIVA Finance is committed to providing affordable financing for individuals and families who may be experiencing a financial hardship. VIVA Finance offers unsecured personal loans that are underwritten based on employment information, instead of credit score. If you are in need of affordable financing, please visit our website at www.viva-finance.com to see if there is an option that is right for you.
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