In this training video, Dr. Nitin Chhoda addresses the problem with stimulus payments that are too low or too high, and what your options are going forward.
1. Criteria for Stimulus Payments
2. Stimulus payments that are too high or too low
3. What you can expect going forward
The IRS — overloaded by the lack of staff and old technology — delivered more than 159 million economic impact payments (EIP) worth $267 billion by mid-May under the $2 trillion Coronavirus Aid, Relief, and Economic Security (Cares) Act.
The payments — up to $1,200 per individual, $2,400 per married couple plus $500 for children 17 and under — were authorized by Congress through the CARES Act. However, not everyone who is eligible for the payment has gotten their money yet.
The checks are based on your adjusted gross income from either your 2019 or 2018 tax return, whichever is most recent.
It is also based on your tax filing status – married or single – as well as any dependents you have under age 17.
There are other variables that affect the amount of those checks, particularly if you are above certain income thresholds — $75,000 for individuals and $150,000 for married couples. For income above those levels, your government check will be reduced. Payments phase out completely for income above $99,000 for individuals and $198,000 for couples.
The IRS has provided information to help Americans calculate how much their payment will be.
Still, because the government rushed the money out to help Americans, there could be inaccuracies.