Economic Stimulus Payment

by Maria Szobi

Are you still scratching your head trying to figure out your Economic Stimulus Payment? Even though the stimulus check should help people whose income declined in 2020, the IRS used 2019 income information for the calculation. Therefore, if your income in 2020 qualifies for the check, this can be claimed on your 2020 income tax return.

First Economic Stimulus Payment (authorized March 2020)

To receive full economic  Recovery Credit your income can’t exceed :

$150,000 for taxpayers filing a joint return

$112,500 for taxpayers filing as head of household

$75,000 for all others

Those with qualifying children will receive up to an additional $500 per qualifying child.

The $1,200 Payment for eligible individuals with no qualifying children ($2,400 for married couples filing a joint return) will be reduced to $0 once adjusted gross income reaches the following thresholds:

$198,000 for taxpayers filing a joint return

$136,500 for taxpayers filing as head of household

$99,000 for all others

Second Economic Stimulus Payment (authorized December 2020)

If you meet the income threshold above, you may be eligible for additional $600 per taxpayer, plus $600 for each qualifying child of the Economic Stimulus Payment

Keep Notice 1444, Your Economic Impact Payment, with your tax records or send it to your tax preparer.