The United States House of Representatives passed the $2T CARES Act this afternoon, and the President has signed it into law. Treasury Secretary Steve Mnuchin says the first set of stimulus checks under Division B, Title 1 should go out the week of April 6th. He also estimates that roughly 83% of Americans will receive some or all of the $1,200 per adult stimulus check.
If you have not yet filed your 2019 tax return, you may want to delay until after you receive your stimulus check; here’s why. If your 2019 return is ready or nearly ready to be filed now, compare the two years’ AGI amounts to determine if one year’s AGI is more favorable. If 2019 AGI is more favorable, file your tax return immediately, if possible. However, if you have already filed your 2019 tax return, the size of the stimulus check will be based upon this AGI amount. Otherwise, the size of the stimulus check will depend upon the amount of AGI you reported in 2018.
The chart below details the filing status, AGI threshold, and phase out limits. The maximum amount of the stimulus check will be $1,200 per U.S. resident not a dependent of another taxpayer. There is also an additional $500 per qualifying dependent for those under age 17. The rebate is reduced by $5 for each $100 of AGI in the phase-out range.
|Filing Status||AGI Threshold||Phase out limits|
|Head of Household||$112,500||$136,500|
|Married Filing Joint||$150,000||$198,000|
Please bear in mind the information is not yet available as to when Secretary Mnuchin will announce a cutoff date as to when they will pull your last filed tax return (2019 vs. 2018).