New Yorkers have been left out of pocket or out of employment as a result of COVID-19. And they are wondering what the federal stimulus package for NYC is. Under the social insurance program, the Senate has passed a $2 trillion economic rescue plan to assist. But you probably still have some questions! Where is the money going, will you get any and how much, and does your adjusted gross income affect it?
To help give some direction, Roomi has gathered some common questions and aimed to answer them as accurately as possible.
What you need to know about the federal stimulus package for NYC
How much money will I receive?
Under the social insurance program, the majority of adults will get $1200. Although some may receive less if they earn above a set limit. Those that have an adjusted gross income of $99,000 or more may not be eligible for the federal stimulus package for NYC.
Families will also receive an additional $500 for every qualifying child aged 16 or under.
Will I receive the full amount?
The federal stimulus package you receive is determined by your income. If you’re a single adult, a resident of the United States and you have an adjusted gross income of $75,000 or less, you can expect to get the full amount. Married couples that earn up to $150,000 between them will also get the full amount.
For those with adjusted gross income above this, the federal stimulus package will start to decrease. Single people that have adjusted gross income of more than $99,000. And married couples that earn in excess of $198,000 will not be eligible for anything, if they don’t have any children. Families with two children are also not eligible if they have a total income of $218,000 plus.
If someone claims you as a dependent, you also won’t get a cut of the package. Everyone must have a valid Social Security number in order to receive the federal stimulus package.
I’m a college student – will I receive anything under the social insurance program?
In the United States, students under the age of 24 are classed as dependents. That is, if a parent pays at least half of their expenses. So, if you’re a student and a dependent, you won’t be eligible for the federal stimulus package for NYC.
How can I check my adjusted gross income?
Go to Line 8b of the 2019 1040 federal tax return to check your adjusted gross income.
You should be looking at your adjusted gross income in 2019 to make an assessment. Haven’t prepared your tax return yet? That’s fine; you can use 2018’s. Those that still haven’t filed their 2018 tax return may be able to use a 2019 Social Security statement. This shows your income as reported by your employer.
What if I anticipate a loss of income in 2020. But my 2019 income makes me ineligible?
That’s a tricky situation and right now. Because the bill doesn’t account for people that would be ineligible based on their 2019 income – even if you expect to lose money this year. Though you may benefit with the federal stimulus package for NYC when you file your 2020 taxes.
There are other provisions in the legislation that may help you out in this kind of circumstance. For example, you may be able to file for unemployment. Or for one of the newly released loans that help small business owners or sole proprietors.
How can I apply to receive the federal stimulus package for NYC?
There’s no need to apply. Make sure the Internal Revenue Service has your banking information. And the money will be transferred straight to you via direct deposit.
When will I get the payment?
It’s expected that most people will get their payments within 3 weeks.
If my payment doesn’t arrive within 3 weeks, how can I be sure it’s on the way?
Once you receive federal stimulus package, you’ll also receive a letter in the mail. (which may arrive a few weeks after disbursement). That will let you know where the payment was sent and in what form. If you still can’t see the payment in your bank account, get in touch with the I.R.S. You’ll find their contact details on your letter.
I haven’t filed my tax return recently – will this affect the federal stimulus package for NYC
Potentially. It’s important that you’ve filed a tax return for 2018 at the earliest. Because not having this on record could affect the mailings of the stimulus checks. Advice from the I.R.S is to file your tax return as soon as possible.
If you owe money that you’re unable to pay, contact a tax accountant. They may be able to find a solution or a payment plan for you.
I receive Social Security retirement or disability payments under the social insurance program – will I get a stimulus payment?
Yes.
I’m unemployed. Will the federal stimulus package for NYC benefit me?
Yes; eligible unemployed individuals and veterans will receive the payment.
Will I have to pay income tax on my payment?
No – all stimulus payments are tax-free.
My student loan default is affecting my income tax refunds. Will it affect the federal stimulus package for NYC?
No. Almost all efforts to garnish tax refunds in order to pay debts are being temporarily put on hold. This may not apply to individuals that are behind on child support.
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