How Much Will Family Child Care Providers Receive from the Stimulus Bill?
The House passed a massive stimulus bill today that thepresident is expected to sign. The bill includes cash payments to individuals,including family child care providers.
How much can you expect to receive?
If you are single, you will receive $1,200 if your adjusted gross income is less than $75,000.
If you are married, you will receive $2,400 if your adjusted gross income is less than $150,000.
If you are filing as head of household, you will receive $1,200 if your adjusted gross income is less than $112,500.
If you have a child age 16 or under, you will receive anadditional $500 for each child.
If you have already filed your 2019 taxes, your adjusted gross income can be found on Form 1040, line 8b. If you haven’t filed your 2019 taxes, you can use the adjusted gross income from your 2018 tax return, on Form 1040, line 7. If you haven’t filed your 2019 or 2018 tax return, immediately file your 2018 tax return to be eligible.
Here are some more important points to know:
If you made more than these amounts, you will receive a reduced payment.
You will receive no money if you are single and making more than $99,000 or married and making more than $198,000 (with no children).
You can’t get this money if someone claims you as a dependent.
If you made too much in 2019 and will make less in2020, you can receive a tax credit when you file your 2020 tax return.
Money you receive from this stimulus bill is not taxable income. You can use it for whatever you want. If you buy something with it that you use in your business, you can deduct the business portion of the expense in one year.
The Treasury Department says it will begin issuingpayments within three weeks, but it could take longer. The money will bedeposited into your bank account as long as you have previously authorized themto send your tax return that way. If not, the IRS will send you a check in themail. You do not need to contact the IRS for them to send you the money.
This is a one-time payment for now. Congress could changethis in the future. You can’t get this payment if someone else claims you as adependent. For example, college students can’t get this money if their parentsclaim them as a dependent. Students under age 24 are generally claimed as dependentsby their parents.
You must have a valid Social Security number to be eligible to receive this money. Therefore, undocumented workers are not eligible.
Here is the entire stimulus bill.
I will be writing about other aspects of this bill in the next few days.
Tom Copeland - www.tomcopelandblog.com
Image credit: https://www.madillrecord.net/covid-19/biden-signs-new-stimulus-package
