Stimulus Credit

The stimulus money you get  is based on your 2020 tax return.    When they hurried to send out checks last year they could not wait for people to file tax returns so they used either 2018 or 2019 information that was in the system already.  

The stimulus checks were an advance on a credit you could get on your 2020 tax return.  If your 2020 income is too high to be eligible for the stimulus you do not have to pay back money you received last year.   But if you did not receive it last year, and your 2020 income is too high, they do not go back and give it to you based on your 2019 income—-you either do not get it at all or you are subject to the phased out amount for your income.

A1. Generally, if you are a U.S. citizen or U.S. resident alien, you will receive an Economic Impact Payment of $1,200  ($2,400  for a joint return) if you (and your spouse if filing a joint return)  are not a dependent of another taxpayer and have a Social Security number valid for employment and your adjusted gross income (AGI) does not exceed:

• $150,000  if married and filing a joint return
• $112,500 if filing as  head of household or
• $75,000  for eligible individuals using any other filing status
  Your payment will be reduced by 5% of  the amount by which your AGI exceeds the applicable threshold above.

You are not eligible for a payment if any of the following apply to you:

• You may be claimed as a dependent on another taxpayer’s return (for example, a child or student who may be claimed on a parent’s return or a dependent parent who may be claimed on an adult child’s return).
• You do not have a Social Security number that is valid for employment.
• You are a nonresident alien.
  The following are also not eligible: a deceased individual or an estate or trust.

Thank you!