SOME STIMULUS RELIEF WON’T BE PAID UNTIL 2021
October 11, 2020 - Douglas Myser
Some stimulus relief won't be paid until 2021. There are a multitude of individuals who did not receive a stimulus check from the CARES Act for various reasons. And for many, the news is bad. They will likely have to wait until 2021 to get their stimulus payment, or because of timing get any money at all. The Coronavirus Aid, Relief, and Economic Security Act, (CARES Act) provides economic impact payments or stimulus payments of up to $1200 for individuals and up to $2400 for taxpayers filing a joint return. The law also includes an extra $500 for each child who was under 17 at the end of 2019. Unless Congress can agree on additional stimulus funding to help those struggling because of Covid-19, the ony economic relief people can expect is the money they are still waiting for under the CARES Act. Some stimulus relief won't be paid until 2021.
To quickly get money out to people, the IRS went back two years--to 2018 and 2019--to pull tax returns and assess them for possible stimulus payments. What many don't realize is the stimulus payment is actually an advanced credit for 2020. The amount of your rebate check or stimulus payment is based on your adjusted gross income (AGI), which is your gross income minus specific deductions or adjustments. If you filed a return but aren't sure of your AGI, you can find it on Line 8b on your 2019 federal tax return or Line 7 on your 2018 return. Some stimulus relief won't be paid until 2021.
Payments are reduced by $5 for each $100 above the $75,000/$112,500/$150,000 thresholds. The IRS has been scrambling and, in some instances, stumbling to get the payments out before Dec. 31, as the CARES Act requires. The agency is still sending our payments based on information submitted through a non-filers tool or as the result of 2019 returns that are being processed. So, it's possible your check really is in the mail or will soon be direct deposited into your bank account.
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