More than 80 million Americans have received a stimulus check payment of $1,200 through the Coronavirus Aid, Relief, and Economic Security Act (or CARES Act) last month. The Social Security beneficiaries are eligible to receive a stimulus check if their income doesn’t exceed a certain limit.
Just saw a story about people paying it forward by donating their stimulus checks to others in greater need. A needed and welcome reminder of the good (and selflessness) that exists in these difficult times.
— Jim Trotter (@JimTrotter_NFL) May 4, 2020
While there are also reports of a second stimulus check, you need to make sure you’re eligible and follow the required steps. If you’re expecting the money in your bank accounts, you should know certain details about the relief package payment. Here are a few things you should know to get the maximum benefits and more money out of the stimulus check.
Stimulus Check Payment: Things to Know
No Income Tax on Stimulus Money: The payment of $1,200 in your bank accounts will have no effects on your tax calculation, neither it will provide any kind of benefits for the tax redemption process. The stimulus money doesn’t come under any taxable income, so you won’t have to pay federal tax or state tax on the stimulus payment.
File Tax Return to get Stimulus Payment: While the government is providing stimulus checks to most of the social security beneficiaries, you need to file a tax return for 2018 or 2019 in order to receive the benefits. The IRS will check whether you have filed your taxes for last year and if eligible, then only you will receive the stimulus money.
Get more money by submitting dependents: Apart from the $1,200 payment, you will also receive an additional $500 per eligible dependent under the age of 17. The deadline for updating the IRS about dependents is May 5, so make sure you update your information and file tax returns for 2020 too.
How to get the Maximum Stimulus Check Benefits?
The stimulus check payments work differently than any normal income deposit and you need to understand it better to get the maximum benefits. There won’t be any kind of tax implications or effects on future benefit eligibility when you spend, save, or invest the stimulus money. The money that the US Government is providing you is meant for your help during the COVID-19 pandemic, make sure to spend it wisely.