By Brenda Guerrero

While most of us are juggling remote work, social distancing and a new normal for family life, it’s easy to miss out on benefits the federal government affords many Americans via the CARES Act.  For example, I have not received the stimulus payment from the US government, have you?  If you did not have a bank account on file with the IRS nor accessed the "Get My Payment" website to enter your bank information, you probably will not receive a deposit.  Moreover, May 13th was the deadline; however, taxpayers may be able to still receive check in the mail in early June.² 

If you are an eligible individual, this is what you need to know to get your check in the mail:
Eligible individuals who file single will receive up to $1,200, and those filing jointly will receive up to $2,400 plus $500 for each qualifying child.  These payments phase out when taxable income exceeds $75,000 for singles, $112,500 for heads of household, and $150,000 for joint filers.  More good news is that these stimulus payments or “recovery rebates” will not be counted as income for your 2020 tax return; rather these will show up as credits to offset tax due, or as a refundable credit for taxpayers with no tax due.¹  Single filers with income exceeding $99,000 and $198,000 for joint filers with no children are not eligible.

Eligibility will be based on your 2019 or 2018 tax returns if 2019 was not filed earlier. For example, if you were single in 2018 and your Adjusted Gross Income (AGI) was above $75,000 you would not qualify for the full $1,200 recovery rebate.  However, if in 2019 you got married and your AGI was $150,000 or less, you can benefit by filing your 2019 tax return as soon as possible.  This will ensure that you receive a “recovery rebate” of $2,400 rather than some amount less than $1,200 or worse yet, nothing at all.

You’ll need to let us know the amount of payment received when we prepare your 2020 tax return so we can make sure any unpaid credit is included in your 2020 taxes paid so you don’t miss out.   We invite you to set up an online meeting with one of our CPAs to discuss this and other benefits the CARES Act may have in store for you, your family and or your business.