Skip to content

COVID-19 Rebate checks

Updated: March 28, 2020

?My office is open during the ?statewide ?shutdown? period? due to the fact that ?my? office is considered ??an essential business? to the community? because of the payroll and accounting services I offer in addition to tax preparation and filing.

APPLY FOR UNEMPMPLOYMENT BENEFITS

New York

https://labor.ny.gov/ui/how_to_file_claim.shtm

New Jersy

https://myunemployment.nj.gov/

COVID-19 REBATE CHECKS

HOW THE AMOUNTS ARE DETERMINED

  • Adults receive a lump sum of $1,200 (or $2,400 for those filing tax returns jointly). 
  • People with little or no tax liability would get at least $600 (or $1,200 for joint returns). 
  • Families receive an addition $500 for each qualifying child claimed as a dependent. 
  • The payment would be progressively reduced for higher-income earners, starting at $75,000, or $150,000 for a joint return.
  • Individuals earning more than $99,000 wouldn't qualify at all.
  • Married couples filing jointly are eligible for a $2,400 check if their household income is below $150,000. Similarly, that amount is reduced gradually up to $198,000.
  • Those filing as a "head of household," typically single parents, will receive the full $1,200 check if they earn up to $112,500 a year, and reduced checks up to $136,500 annually.

When do I receive the money?

We don't know how long it would take the IRS to send out all the money, but it would likely take weeks before the first payments start going out.

Treasury Secretary Steven Mnuchin said on Wednesday that the IRS would begin issuing payments within three weeks of the legislation being signed into law. The bill simply calls for payments to be made "as rapidly as possible."

But experts say it could take longer. In 2001, it took six weeks for the IRS to start sending out rebate checks under a new tax cut, and in 2008, it took three months after a stimulus package was signed into law.

How do I get my money?

The money would likely be deposited directly into individuals' bank accounts -- as long as they've already authorized the IRS to send their tax refund that way over the past two years.

If not, the IRS would send out checks in the mail.

For those that haven't filed a 2019 or 2018 tax return, the IRS would rely on information on file at the Social Security Administration, which keeps records on all Americans who have paid payroll taxes.

It's still possible that some people may fall through the cracks. On its website, the IRS says no sign-up would be needed to receive the money, but it's possible the agency ends up offering further guidance.

If you have any questions regarding this please email me at

shibu@spthomas.com

 

Request a Free Consultation


Case Review Worksheet Client Finance Forms

Ask a Question

Find comfort in knowing an Expert in accounting is only an email or phone-call away.

(718) 698-2370

We Are Here to Help

We will happily offer you a free consultation to determine how we can best serve you.

Contact Us

Send us a File

Use our convenient SecureSend page to securely deliver a file directly to a member of our firm.

Secure Send

Newsletter

Subscribe to our newsletter to receive news, updates, and valuable tips.