There’s been some confusion surrounding the one-time stimulus check Americans will be getting from the coronavirus relief bill.
It’s actually possible that you’ll still get some money even if you don’t qualify.
To get the coronavirus benefit, the IRS is looking at your adjusted gross income from your 2019 return. If you haven’t filed yet, the IRS will look to your 2018 return.
Singles who earn less than $75,000 will get $1,200, and those who earn less than $99,000 will get a partial benefit. Married people who file jointly and earn less than $150,000 will get $2,400, and they’ll get a partial benefit if they earn less than $198,000.
But what if you had a one-time higher income for the year the IRS is considering?
Take, for example, someone who normally has adjusted gross income of less than $75,000. If that person sold stocks or some real estate, their income level for that year could be pushed higher for 2019 — disqualifying them from getting the stimulus check now — even if their income goes back down in 2020.
Or what about someone who had a high-paying job in 2019, but then lost it during the coronavirus pandemic? That person could have significantly smaller income in 2020.
People in those positions, as long as their 2020 adjusted gross income remains under the cutoffs, will indeed get money from the stimulus plan. But it won’t be an actual payment now. Instead, it will be a tax refund from your 2020 tax return.
“They’ll just have to wait until the 2020 tax season to get the rebate instead, and not get the advance now,” said Garrett Watson, senior policy analyst for The Tax Foundation. “In other words, the 2019 or 2018 returns are used to calculate the rebate advanced now, and 2020 will be used for any additional rebate they may qualify for using 2020 income.”
So if you qualify using your 2020 income, you’ll get the stimulus payment in the form of a tax refund.
Also note that if your 2019 return hasn’t yet been filed, but would be better for you than your 2018 return in terms of qualifying for the benefit, consider filing your 2019 return quickly.
If you’re not sure if you qualify for the benefit that’s coming in the next three weeks, use our stimulus check calculator.
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