One of the main components of the proposed $1 trillion economic stimulus plan set in motion. By the Trump administration is a scheme that provides for $1,200 payout to all adults and $500 to all children. To help them tide over the hardship caused by the COVID-19 pandemic. However, even as Americans gear themselves up to receive stimulus the first payment very soon. Many of them will not be eligible to get the benefit at all, depending on their status. A quick look at the main exclusions:
As per the new law, only those earning less than $75,000 per year are eligible to get $1,200. With each child qualifying to receive another $500. Those filing joint tax returns will get $2,400 with the same amount also being paid out to those with no or little tax liability. However, persons earning more than $75,000 ($150,000 jointly). Get less and those earning more than $99,000, $1,98,000 for joint filers. And $136,500 for the head of household filers with one child are not eligible to receive this incentive. Person stimulus who are unemployed in 2020 but have earned more than $99,000 in the previous year will not be eligible.
Students who are 17 years or older do not get anything if their parents or guardians have claimed them to be dependents. They are not eligible to get $500 reserved for children as only those who are 16 or below qualify. Students, who are earning, not claimed as dependents by their parents or guardians. And meet the income and eligibility norms will be eligible if they have filed their tax returns in 2018 or 2019.
Elderly and Disabled People Claimed as Dependents by Others
While most senior citizens will be eligible for the payment, the law excludes those who have been claimed. As dependents on their children or others. The same rule applies to disabled adults, which means that if their parents. Have shown them to be dependents in the returns; they will not be eligible for this special incentive.
Certain Class of Immigrants
All immigrants who have H-1B/H-2A work visas or green cards will be eligible for the payment. As long as they meet the other eligibility criteria and have a Social Security number. Although, this means that illegal immigrants, temporary workers, and non-resident aliens do not qualify.
Babies born in 2020 are not eligible to receive the payment this time but will have to wait until next year for their parents. To be able to claim $500 after they file their tax returns. For the current payout, only tax returns filed by the parents in 2018 and 2019 will be considered. It should be kept in mind that the payout is subject to the income thresholds applicable to the parents.
Low-Income Persons Not Filing Returns
Low-income people not filing their tax return but who are recipients of social security are eligible to receive the incentive as the IRS can use the data available with them to determine the eligibility amount and the address to which, the check will be sent. However, those who have not filed their tax returns in the last couple of years may find it more difficult to receive the incentive because the IRS cannot easily determine their eligibility. A web portal has been established on which these individuals can register and provide the requested information that the IRS can then use to determine eligibility and payout amount.