The money is NOT taxable…
Max amount is $1,200 for income of $75,000 or less
$5 deducted from the $1,200 for every $100 over the #75k….
Please read the piece below from The Hill….
The Hill answered several frequently asked questions about the checks on Wednesday. Here are answers to additional questions.
Will people have to pay taxes on the money when they file their tax returns next year?
No. The money is not counted as taxable income. It’s treated as a fully refundable tax credit against your 2020 taxes, meaning that you get the money even if you don’t have any tax liability.
Can people get checks even if they haven’t filed a tax return in recent years?
In cases where people haven’t filed tax returns but receive Social Security benefits or railroad retirement benefits, the IRS can look at statements about those benefits to help get the checks to those people.
For people who have not filed a 2018 or 2019 tax return and do not receive Social Security or railroad retirement benefits, there is an incentive to promptly file a tax return to ensure that the IRS can reach them to distribute the money to them this year.
People who do not file tax returns are typically low-income. For example, the IRS requires married couples with both spouses under 65 to file returns for 2019 if their gross income was at least $24,400. That threshold is raised to $27,000 in cases where both spouses were 65 or older. Social Security benefits often aren’t included in gross income.
Are immigrants eligible to receive the checks?
They are if they have a Social Security number. A Republican aide to the Senate Finance Committee noted in a call with reporters Wednesday that Green Card holders qualify for work-eligible Social Security numbers.
Are college students eligible to receive the checks?
If college students are at least 17 years old and are claimed as a dependent on their parents’ return, their family would not receive any payment amount for them. A college student who filed their own return and was not claimed as a dependent on their parents’ return would qualify for the rebates.
I made $85,000 last year. How much money will I receive?
For a single tax filer, the rebate amount reduces by $5 for every $100 of income over $75,000. So a single person with no children who had adjusted gross income of $85,000 in 2019, and has already filed their 2019 tax return, would receive $700.
Keep in mind that phase-out of the credit is based on people’s adjusted gross income, which does not include income put into pre-tax accounts such as traditional 401(k)s. As a result, someone with an annual salary of $85,000 and no other income would have adjusted gross income of less than $85,000.
How can people who recently moved ensure they get their checks?
If you received a refund in 2018 or 2019 via direct deposit to your bank account, and you did not change your bank account when you moved, you should be able to receive your rebate via direct deposit…