Q. EXACTLY WHAT ARE THE STIMULUS PAYMENTS?

A. On April 2, 2020, the US government enacted a stimulus program to assist US taxpayers in managing the financial stress caused by the Coronavirus. This program includes stimulus payments and SBA loans for qualifying individuals, small businesses, large businesses, and nonprofit organizations.

Q. HOW WILL INDIVIDUALS QUALIFY FOR THE PAYMENTS?

A. To qualify for these refundable tax credits, US taxpayers need a social security number and must have filed a tax return in 2018 or 2019. However, non-resident aliens, individuals listed as dependents on another person’s return, and those with an ITIN instead of a social security number do not qualify. If you haven’t filed yet, you can still file, but your payment will be delayed until the returns are processed. Therefore, don’t delay your filing, as no payments will be made after December 31, 2020.

Q. WHAT ARE THE INCOME LIMITS TO GET PAYMENTS?

A. The income limits depend on your filing status and adjusted gross income (before the foreign income exclusion):

  • Single: Under $75,000-$99,000
  • Head of Household: Under $112,500-$136,500
  • Married Filing Joint: Under $150,000-$198,000

For every $100 of income that exceeds these minimums, the tax credit reduces by $5 up to the maximum amounts.

Q. HOW MUCH CAN I EXPECT TO RECEIVE?

A. The maximum credit is $1200 per taxpayer and $500 for each dependent child with a valid social security number listed on your tax return. Note that ITIN holders do not qualify.

Q. HOW WILL I RECEIVE THE FUNDS?

A. The payments will be directly deposited into your US bank account if you reported it on your US tax return. Additionally, if you receive direct deposits for social security or other government benefits, the stimulus benefits will also be directly deposited.

Q. WHAT HAPPENS IF I DO NOT HAVE A US BANK ACCOUNT OR THE IRS DOES NOT HAVE MY BANKING INFORMATION?

A. In that case, the IRS will issue a check and send it to your last known address. Furthermore, if you are not required to file a return, the IRS is working on creating a simplified document for you to provide your bank account information. Therefore, expect an 8-16 week delay!