Español

LCW CPAs
  • Home
  • Accounting
    • Cash Flow Forecasting
    • PPP Loan Forgiveness Assistance
    • Accounting Services
    • Bookkeeping
    • Payroll
    • Advisory Services
    • Consulting for QuickBooks®
    • Training for QuickBooks®
    • Cloud Accounting
  • Assurance
  • Tax
    • Tax Preparation and Planning
    • Tax Resolution
    • Help with Your IRS Audit
    • Filing Prior Years Returns
    • Owing the IRS Money
    • Behind on Payroll Taxes
    • When Your Spouse Owes the IRS
    • International Tax Services
  • Software
    • SAP Consulting Services
    • QuickBooks Online
    • QuickBooks Online Advanced
    • QuickBooks Desktop
    • QuickBooks Enterprise Solutions
    • QuickBooks Point of Sale
    • QuickBooks Payments
    • Xero Cloud Accounting
  • Industries
    • Services
    • Construction
    • Medical and Health Care
    • Real Estate
    • Non Profit
    • Retail
    • Restaurant
    • Manufacturing
    • Wholesalers and Distributors
    • eCommerce
  • Resources
    • Resources
    • Organizers
    • Mobile Accounting
    • Blog
  • Testimonials
  • About
    • About Us
    • Senior Management
    • Our Team
    • How to Get Started
    • Memberships
  • Contact
    • Contact Us
    • Contact Form
  • Client Login
978.689.8822
978.682.9873
December 30, 2020

A New Round of Stimulus Checks

Mark Alaimo Blog, News

Tweet
Share
Share
Pin

On December 27, 2020, President Trump signed into law the Consolidated Appropriations Act, 2021 which included measures for both COVID-19 relief and sweeping funding provisions for the government through September 2021. While there are many sections of this law to explore, this article will focus on the stimulus checks.

Qualifying individuals will receive these economic impact payments, and the Washington Post reports that more than 85 percent of US households will receive a check. To qualify:

  • For individuals making up to $75,000 per year, or if a couple, making up to $150,000 per year, the check will be $600.
  • For individuals making between $75,000 and $86,900 (couples: $150,000 to $173,900), the check will be between $595 and $5. In this phaseout, the amount of the check decreases by $5 for every $100 of income above $75,000/$150,000, phasing out completely at $87,000/$174,000.
  • The amount sent will be based on the amount you earned (adjusted gross income, to be exact) on your 2019 tax return.
  • Includes children. The definition for child will be the same as the one used to calculate the child tax credit.
  • Excludes dependent adults over 17 at the end of the tax year.
  • Excludes persons who died on or before January 1, 2020.
  • Includes individuals who file jointly with an ITIN, but excludes the person with the ITIN.
  • Includes 2019 non-filers who receive benefits from Social Security Administration, Railroad Retirement Board, and the Department of Veterans Affairs.

Here are some examples: A family of four – mom, dad, and two children under 17 – that earns a total of $100,000 per year will receive $2,400. A single man earning $80,000 per year that lives with his disabled father will get $350 (80,000 – 75,000 = 5,000 / 100 = 50 * $5 = $250. $600 – $250 = $350). A woman with 2 small children earning $87,000 will not get anything.

Taxpayers do not have to do anything to receive their stimulus checks. Many taxpayers will receive their stimulus checks via direct deposit, if that information was included on your 2019 return. If the IRS does not have your bank account information, you will likely get a check or a pre-paid debit card. If you’ve moved, you can update your address by completing an IRS change-of-address form (allow six weeks).

The checks are supposed to start hitting bank accounts early in January. You do not have to pay tax on this income.

If you never got the first stimulus check, you can claim it on your 2020 tax return. Details are here on the IRS site. https://www.irs.gov/newsroom/recovery-rebate-credit

Tweet
Share
Share
Pin
Deductibility of PPP-Related Expenses The Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act

Related Posts

Blog

5 Tips to Spice Up Working from Home

Blog, Business Tips, Profits

Mix Up Your Revenues for More Profits

Blog, Tax

Tax Changes Affecting Businesses from the American Rescue Plan Act

Monthly Archives

Categories

  • Accounting
  • Accounting Software
  • Blog
  • Bookkeeping
  • Bookkeeping Tips
  • Business Development
  • Business Growth
  • Business Tips
  • Cool Tech Tools
  • Cost-Saving Tips
  • Cost-Savings Tips
  • Customer Service Tips
  • cybersecurity
  • Decision-Making Tips
  • Expense Reduction Tips
  • Finance Management
  • Latest News
  • Management Tips
  • Marketing Tips
  • Money Management
  • News
  • Payroll Tips
  • Personal Development
  • Profitability Tips
  • Profits
  • Tax
  • Tax Resolution
  • Technology
  • Time Management Tips
  • Uncategorized

Español

  • Home
  • Accounting
  • Assurance
  • Tax
  • Software
  • Industries
  • Resources
  • Testimonials
  • About
  • Contact
  • Client Login

Contact Us

Tax Services, Accounting Services and Services for QuickBooks®

LCW Certified Public Accountants

130 Parker Street, Suite 20
Lawrence, MA 01843
United States

Phone: 978.689.8822
Fax: 978.682.9873

Client Login


Intuit, QuickBooks, and QuickBooks ProAdvisor are registered trademarks of Intuit Inc. Used with permission under the QuickBooks ProAdvisor Agreement.
Copyright LCW Certified Public Accountants 2021 | Website Disclaimer | Privacy Policy | Site Design by Accelerator Websites