To aid individuals and families who are struggling financially due to the COVID-19 pandemic that is currently rapidly spreading across America, the Senate has authorized a $2.2 trillion relief package to be disseminated to those most in need. Donald Trump, the President of the United States of America, has promised to approve this relief package as soon as the legislation reaches his hands.
This relief package will be used to directly provide $1,200 to each individual adult and $2,400 to married couples across the country. Those with children or other dependents may also be eligible for an extra $500 per child . These are one-time payments, however, there are certain criteria to be met. The IRS will soon be providing further information and guidance to clarify any concerns or questions that people may have.
Individuals earning less than $75,000 and couples earning less than $150,000 annually will be given highest priority as they are most in need of financial assistance during these tough times. Those who are earning more may receive a slightly lower sum, depending on their annual earnings. Furthermore, those who earn more than $99,000 annually will not receive any financial assistance via this relief package.
Individuals who are currently receiving Social Security and/or are retired and do not file taxes will be eligible for this relief package . However, the exact amount they will receive will be dependent on the specific details of their Social Security package as well as other factors such as their socio-economic status, whether they have dependents, etc. The government will liaise with the Social Security Administration to determine their rebate and those most vulnerable and/or in need of assistance will be prioritized.
Others on Supplemental Security Income (SSI) will also be eligible for this rebate if they have appropriately filed their taxes for 2018 and 2019. This has been confirmed by multiple members of Parliament, including Senator Ben Cardin (D-MD) and Chuck Grassley (via a spokesperson).
Those who did not file tax returns during this period due to their annual income being lower than the current threshold may be eligible for the rebate. However, this information has yet to be confirmed and it is recommended that individuals file their tax returns for 2019 immediately to have a better chance of eligibility. Individuals can still file tax returns even if they do not owe tax and are not eligible for refunds .
This recommendation stems from the fact that the IRS will be working to obtain information about those on SSIs from the 2019 Social Security Benefit Statements or the Social Security Equivalent Benefit Statement if they have not filed their taxes. They will determine eligibility as well as the specific dollar amount of the rebate based on their analyses .
Those who have filed their taxes appropriately and get their return before the IRS begins to process their rebates from the relief package will soon receive a check. Those who do not receive a check now have no need to worry as they will be receiving it next year. Alternatively, individuals in this situation can choose to claim this rebate as a tax refund provided they file their tax returns by April 15, 2020.
This rebate is not taxed and will not have to be paid back to the government at any point.