Does the Stimulus package help in Tax Refunds for the NRIs in the US?

Does the Stimulus package help in Tax Refunds for the NRIs in the US?

by | Jul 2, 2020 | federal government, Government Benefits, Stimulus payment, Tax Refund

Does the Stimulus package help in Tax Refunds for the NRIs in the US?

The Federal Government had been sending Stimulus checks to millions of Americans including the NRIs to alleviate the financial and economic stress created by the pandemic COVID-19. These stimulus checks have been of great help to those NRIs who have been struggling to meet their basic expenses due to either loss of work or business shut down because of COVID-19. 

If you are an NRI and have also received the Stimulus check, an obvious thought in your mind must be about the co-relationship between the Stimulus package and your tax refunds. There is a relationship between the Stimulus check you have received and your income tax; however, by the receipt of Stimulus check your tax refund would neither be decreased nor would your tax liability be increased.

How are Stimulus checks and Income taxes related?

The IRS is in charge of sending out the Stimulus checks to the NRIs and even it is the IRS that is responsible for all decisions associated with tax refunds and collection of payments for NRIs.This reason might cause apprehensions in your mind especially when you are an NRI and owe to pay taxes to the IRS.

However, you do not need to worry about your taxes about the receipt of the Stimulus checks. The Stimulus money is not considered as taxable income.

The Stimulus check you receive is not going to increase the amount of tax you owe to pay to the IRS while filing your tax returns for 2020. It is also not going to decrease your tax refunds to be obtained for the year 2020. The involvement of IRS and your tax filings are only involved here because of the reference they provide to your income which is a major factor in the determination of your Stimulus amount.

Your amount of Stimulus check would be calculated based on your federal tax return for the year 2018 or the year 2019. If your 2019 tax returns have been filed, then that would form the basis for the calculation of your stimulus payment otherwise the IRS would be using your tax return information of the year 2018. If you do not receive your Stimulus payment this year, you would be able to claim it next year while filing 2020 tax returns.

There might be a scenario in which your income has changed tremendously over the recent period. In such a case, the working procedure can be summarized as mentioned below.

  1. In case of your income being lower than that of your income in 2018 or 2019, the IRS would calculate your Stimulus payment based on your income of the year 2020. In this case, your Stimulus payment would be received after your income tax returns for the year 2020 are filed.
  2. If your income is on the higher side in 2020, then the IRS would not force you to pay back your Stimulus money and you would not even lose any money from your 2018 or 2019 refund.

In case of tax non-filers

If you have not filed your tax returns recently then

  1. If you are the recipient of Social Security benefits or are a military/railroad retiree then you can obtain Stimulus payment without the need to file your income tax returns.
  2. If you have not filed tax returns for 2018 or 2019 and have not received any federal benefits, you can obtain your Stimulus checks by filing the tax returns for 2019 or by using the IRS tool for non-filers.

Stimulus Payment- An advance on the tax refund or a Government benefit

a. Stimulus payment is not an advance income tax refund and it is not going to affect your tax refunds based on your 2019 or 2020 tax returns. Moreover, you will not have to pay back the Stimulus money.

b.Stimulus payment can be said to be a federal tax credit for 2020 or an advance of a refundable credit on your 2020 tax returns and can also be referred to as Stimulus rebate.

In case of this rebate, you would receive the payments immediately rather than waiting till next year unlike the Federal child tax credit or Earned Income Tax credit.

c. Your eligibility to receive Social security benefits or Unemployment benefits would not affect your Stimulus payment receipt.

Can Stimulus payment be seized?

  • Suppose you owe money to the Federal Government in the form of back taxes or student debt loans, your Stimulus payment would be safe by the process known as Federal offset.
  • But, the Federal Government can be able to take a portion of your entire Stimulus payment if you are overdue on Child support payments.
  • Some cases in which your Stimulus check can be seized are court orders to make certain payments through debt collectors or if you owe money to bank/credit unions in cases like an overdue auto loan, an overdrawn account, or a delinquent personal loan.

Conclusion

Hence, in these difficult times caused by the novel coronavirus, the Stimulus payments can be considered as a support system for those NRIs who are facing a financial crisis. You must remain informed about the various aspects related to the Stimulus payment and try to resolve your queries with the IRS in case of delay or troubles in obtaining your Stimulus check.

What does the Coronavirus Stimulus Package mean for you?

What does the Coronavirus Stimulus Package mean for you?

by | Apr 27, 2020 | CARES Act, coronavirus, Stimulus payment

 What does the Coronavirus Stimulus Package mean for you?

The Coronavirus Aid, Relief and Economic Security (CARES) Act was signed into law by the US President on 27th March 2020. This is an economic relief package worth $2 trillion which commits of protecting the Americans from the hazardous impacts caused by the COVID-19. The Coronavirus Stimulus package would help provide some amount of relief to the Americans affected by the pandemic.

Let us talk about the different facets included within the Coronavirus Stimulus package which would help provide economic assistance to the Americans.

Stimulus Checks

Through the CARES Act, around 80% of the American population would be eligible to receive a one-time payment in the form of Stimulus Checks. The amount that would be received as Stimulus payment is mostly dependent on the Adjusted Gross Income (AGI) of the taxpayers. AGI of an individual can be obtained from Line 8b of Form 1040. It is calculated by the Gross income of an individual minus the adjustments made for eligible deductions like IRA deduction or interest on the Student loan, etc.  

  1. If you are filing your tax returns as a single filer and your AGI is below $75,000 then you are eligible to receive Stimulus payment of $1200. 
  2. In case, you are claiming a dependent below 17 years of age then you would be eligible to obtain an additional $500 for the dependent. 
  3. However, there would be a reduction in the Stimulus payment by $5 for every $100 rise in AGI above $75,000.
  4. In case, you are married and are filing your tax returns jointly then your AGI must be below $150,000 to obtain a Stimulus payment of $2400. You can also obtain an additional $500 if you can claim a dependent below the age of 17 years. 
  5. Moreover, in this case, also there would be a reduction of $5 from the Stimulus check for every $100 increase in AGI above the $150,000.
  6. For individual tax filers, if the AGI is above $99,000 and no dependent has been claimed by the individual then Stimulus payment will not be received by the individual. 
  7. Similarly, for married couples filing tax returns jointly if the AGI is more than $198,000 and no dependents are being claimed then the Stimulus payment would not be received. 

Unemployment payments

  1. There would be an increase in the unemployment payment for four months through 31st July 2020 by an amount of $600 per week. 
  2. This increase in unemployment payment would be applicable for those who were not qualifying for any employment including freelancers, self-employed individuals, gig workers, part-time employees, etc.

Relief on the payment of Student Loan

  1. The employers would be able to make the payment of the Student loan on behalf of the employees in a tax-free manner. This payment of the Student loan could be up to $5250 in a year.
  2. This implies that there would be an exclusion of the loan payment done from the income of an employee.
  3. This provision is being implemented from the date of signing of the CARES Act into law i.e. from 27th March 2020 until 1st January 2021.

Delay in the payment of Social Security Payroll tax

A portion of the Social Security Payroll tax needs to be done by the employers and this is even applicable to the self-employed individuals. According to the provisions of the CARES Act, the employers can make a certain delay in the payment of their part of the Social Security payroll tax for the rest of the part of the year. The liability can be paid easily over the next two years.

 Economic assistance for Small businesses and Self-employed individuals

  1. By the CARES Act, the Small Business Administration has been provided with $349 billion for distributing it among self-employed individuals, independent contractors, and non-profit organizations by the Paycheck Protection Program (PPP).
  2. The Federal Reserve Lending Program would also be receiving support in the form of $454 billion. This amount has to be utilized in providing economic support to non-profit/small businesses that have a workforce of around 500-10,000 employees. The major objective of providing aids to these Small businesses is to retain their workforce by providing them compensation and benefits.

 

Waiver of penalty for the early withdrawal of retirement funds

 

  1. A qualified individual who has been affected by COVID-19 might need to withdraw money from his retirement funds. In such a scenario, the individual would get a 10% waiver of the early withdrawal penalty.  This waiver would be applicable for up to $100K of retirement funds.
  2. An individual would be qualified for this waiver only if
  • An individual, his spouse, or his dependent have been diagnosed with COVID-19.
  • An individual has been experiencing adverse financial conditions due to being quarantined.
  • If an individual’s working hours have reduced or he is not able to work for taking care of his child as child care/schools have been closed due to COVID-19.

Hence, the Coronavirus Stimulus Package is an effective initiative by the Federal Government which would help reduce the stress of Americans caused due to the pandemic COVID-19.

References

  1. https://blog.turbotax.intuit.com/tax-news/what-the-coronavirus-covid-19-stimulus-bill-means-for-your-taxes-46623/
  2. https://home.treasury.gov/policy-issues/cares

 

 

How can the pandemic affect my taxation as an NRI in the US?

How can the pandemic affect my taxation as an NRI in the US?

by | Apr 21, 2020 | coronavirus, HSA, IRA, Stimulus payment, Tax Extension, Taxation

How can the pandemic affect my taxation as an NRI in the US?

The impact of the pandemic COVID-19 is on an increase across the entire world. Currently, more than 2 million people have been affected by COVID-19 out of which 1.7 lakhs have already died. taxation as an NRI in the United States has also experienced a very rapid spread of the coronavirus with the number of affected people being 7.5 lakhs approximately whereas the deaths due to COVID-19 have reached 40 thousand persons.

Not only the lives of the people in the US are being affected due to COVID-19, but there has also been a hugely adverse effect on the livelihoods of common people. Several businesses have closed down leading to many people including NRIs losing their jobs. However, the Federal Government has implemented several changes in the tax laws for the NRIs intending to reduce the stress in such troublesome times.

Changes in tax laws for NRIs

a.Deadline extension for filing tax returns

 The IRS and the US Treasury had declared that the deadline to file for individual federal income tax return has been extended to 15th July 2020. For this extension of 90 days provided by the IRS, there would not be any penalties charged by the IRS.

b.Deadline extension for tax payment

The deadline for making the federal income tax payment has also been pushed to 15th July 2020. This means if an NRI has tax to be paid this season then there is ample time to make the payments. For providing this extension in the timeline for tax payment, the IRS will not be charging any penalties. Moreover, this deadline extension is also applicable for the first quarter payment of estimated tax payments which were due on 15th April 2020.

c.No necessity for additional forms  

An NRI would not need to file for a tax extension to avail of the extended deadline for federal income tax return filing and federal income tax payment as well. However, if an NRI thinks that he would not be able to file the tax returns or pay the taxes even after 3 months then he would have to file for an extension by 15th July 2020.

d.Deadline extension for quarterly estimated tax payment

 For the self-employed NRIs who had their quarterly estimated tax payment due on 15th April 2020 and 15th, June 2020 would obtain an extension for the payment till 15th July 2020.

 

e.Changes in the deadlines for payment of State Tax

In general, the deadlines for filing federal tax returns and payment of federal tax are different from that of the State tax. However, due to the outbreak of COVID-19 the deadlines for Federal tax returns and tax payment had been extended. Most of the States have aligned their tax payment deadlines with that of the new Federal deadline. Some states have defined their guidelines for the payment of tax and deadlines. Complete information on the State tax-related changes and deadlines can be obtained from the respective State tax agencies.

f.Deadline extension for contributions to be made into IRA, HSA, and MSA

 Along with the extension in the deadline of Federal taxes, there has been an extension in the deadlines for making contributions to the IRA, HSA, and MSA. The deadline for contributing to the IRA, HSA, and MSA has been extended to 15th July 2020. However, in the case of IRA, the NRI must ensure that when he is making the additional contribution towards the IRA the custodian should earmark the additional contribution for the year 2019 and not consider it as 2020 return.

 

g.Stimulus Payments

Under the Coronavirus Aid Relief and Economic Security (CARES) Act, the Federal Government has announced the process of one-time payments to be sent in the form of Stimulus payments. These Stimulus payments would mainly depend on the filing of tax returns for 2019 and the Adjusted Gross Income (AGI) of an NRI.

NRIs filing tax returns as single filers and having an AGI below $75,000 would obtain $1200 as Stimulus payment. When the AGI is above $75,000 then the amount obtained reduces by $5 for every $100 increase in the AGI above $75,000. NRIs filing tax returns jointly as married couples and having an AGI below $150,000 would receive $2400 as Stimulus payment. If the AGI exceeds $150,000 then the Stimulus payment received would reduce by $5 for every $100 increase in the AGI above $150,000. In both cases, an additional $500 can be obtained if the filer claims a dependent below the age of 17 years.

However, along with these changes being implemented in the tax laws, the IRS is also processing the tax returns according to the normal procedures. So, it is advisable for the NRIs also to file their tax returns soon if they have not done it yet and obtain their refunds.

References

  1. https://blog.taxact.com/covid-19-and-your-taxes/
  2. https://blog.taxact.com/stimulus-payments-everything-to-know/

 

Do I need to file my taxes to be eligible to receive a Stimulus check?

Do I need to file my taxes to be eligible to receive a Stimulus check?

by | Apr 16, 2020 | CARES, COVID - 19, federal government, Form RRB 1099, IRS, Stimulus payment

Do I need to file my taxes to be

eligible to receive a Stimulus check?

In the US, the Federal Government had passed the CARES (Coronavirus Aid Relief and Economic Security) Act to bring some relief to the Americans who are struggling due to the outbreak of COVID-19. Under the CARES Act, the IRS announced that a Stimulus check would be issued to the individuals in the US for financial relief up to some extent.

According to the IRS, most of the Americans would be receiving their Stimulus checks automatically based upon the 2019 tax returns. The information of the 2018 tax returns would be considered if the 2019 tax returns have not been filed by an individual. The Stimulus payments would be done by the Direct Deposit method as it would help in sending the money faster. 

Who is eligible to obtain the Stimulus payment?

The majority of the American population would qualify to receive the Stimulus payment. The size of the Stimulus payment would depend on the Adjusted Gross Income (AGI) of the individuals.

For an individual who is filing his tax returns as a single filer and is having AGI below $75,000, the Stimulus payment received would be $1200. He would also receive an additional payment of $500 if he would claim a dependent below the age of 17 years. If the AGI of the single filer is above $75,000, then the Stimulus payment would reduce by $5 for every $100 increase in AGI above $75,000. Also, if the AGI of the individual is above $99,000 and no dependents are being claimed then the individual would not receive any Stimulus payment.

For married couples filing their tax returns jointly and are having an AGI below $150,000, the Stimulus payment received would be $2400. They would also be eligible to receive an additional payment of $500 by claiming a dependent below the age of 17 years. If the AGI of the couple is above $150,000, then the Stimulus payment would reduce by $5 for every $100 increase in AGI above $150,000. Also, if the AGI of the individual is above $198,000 and no dependents are being claimed then there would be no Stimulus payment received.

Need to file tax returns to obtain Stimulus payment

Let us talk about those instances where the filing of tax return is necessary to obtain the Stimulus payment.

  1. Self-employed individuals who have a net income of $400 or more must file their tax return as they would have to pay self-employment taxes on the income of $400 or more.
  2. Those taxpayers whose income is more than the income filing threshold as determined by the IRS need to file their tax returns for obtaining the Stimulus payment. This income filing threshold determined by IRS is $12,200 for single filers, $24,400 for married couples who are filing their tax returns jointly and $18,350 for filers filing returns as ‘Head of Household’. 
  3. Those dependents who have an unearned income of more than $1,100 and earned income more than $12,200 must file their tax returns for receiving the Stimulus payment.
  4. If an individual owes taxes on an IRA or Health Savings Account he will have to file his tax returns for obtaining the Stimulus checks.
  5. If an advance payment of the health coverage tax credit has been received by an individual, then he must file his tax returns.

Situations which rule out the need to file tax returns for receiving Stimulus payment

a.Social security recipients and the Railroad retirees who have not filed their tax returns for the year 2019 or 2018 do not need to perform any additional paperwork like filing a tax return for obtaining the Stimulus payment. The IRS would use the information from Form SSA-1099 and Form RRB-1099 respectively to obtain the information needed to send the Stimulus payment.

b.Those Americans who belong to the lower-income group or who have income below the tax filing threshold of IRS and have not filed tax returns for 2019 or 2018 must use the new web tool of the IRS. By using this tool, individuals can enter their basic information like Name, Address, SSN, Dependents, etc. This information would help in calculating and sending the Stimulus payment.

c.Recipients of Supplemental Security Income (SSI) will obtain their Stimulus payments automatically without the need for filing the tax returns. However, if they have qualifying dependents below the age of 17 years must use the web tool of IRS to claim the additional $500 payment.  This is also applicable for the Railroad Retirees and Social Security beneficiaries.

Hence, taxpayers don’t need to file tax returns for obtaining the Stimulus checks. It mainly depends upon the circumstances which determine the need to file the returns.

References

  1. https://blog.turbotax.intuit.com/tax-news/am-i-required-to-file-my-taxes-to-get-a-stimulus-check-46816/
  2. https://www.aarp.org/money/investing/info-2020/tax-return-coronavirus-stimulus-check.html

 

All you need to know about Stimulus Payment

All you need to know about Stimulus Payment

by | Apr 13, 2020 | AGI, COVID - 19, federal government, SSA 1099, Stimulus payment

All you need to know about Stimulus Payment

The US President has signed a relief package of $2 trillion known as the Stimulus package which intends to provide relief to individuals and businesses that have been financially hit due to the outbreak of COVID-19. This Stimulus package would include sending of stimulus checks to most of the Americans, paid sick leave, unemployment benefits, student debt relief for a temporary period, etc. to alleviate the impact caused by the COVID-19.

Eligibility to obtain Stimulus payment

 

Mostly, all Americans would qualify to obtain some amount of money in the form of Stimulus payment. To obtain Stimulus payment, an individual should be having your Social Security Number and should not be dependent of someone else.

a.Individuals with a single filing status and having an adjusted gross income (AGI) of $75,000 or less would receive the full Stimulus payment of $1200.

When the AGI is above $75,000 then the Stimulus payment would reduce by $5 for every $100 income above $75,000. If an individual is earning more than $99,000 in a year then he is not eligible to obtain Stimulus payment.

b.Married couples who have an AGI of $150,000 or less are eligible to obtain the Stimulus payment. This payment would be $2400 for the married couples. If a couple has an AGI which is more than $150,000 and up to $198, 000 then the Stimulus payment reduces by $5 for every $100 rise in income above $150,000. Those couples who have an AGI of more than $198,000 are not eligible for obtaining Stimulus payment.

c.Those filers who are classified as ‘Head of Household’ and have an AGI of up to $112,500 are eligible to obtain Stimulus payment of $1200. If the ‘Head of Household’ filers has an AGI of up to $136,500 then reduced Stimulus payment would be available in those cases. Also, those ‘Head of Household’ filers who earn more than $136,500 is not eligible for obtaining Stimulus payment.

d.If you have children who are below the age of 17 years then you can receive an extra $500 for each child as the Stimulus payment.

Furthermore, according to an announcement made by the Treasury Department on 1st April 2020 those individuals who are on Social Security do not need to file a tax return for obtaining their Stimulus payment. Their Stimulus payment would be generated by reference to their Form SSA-1099 and Form RRB-1099. This is applicable for the senior citizens, railroad retirees and Social security recipients who do not file tax returns otherwise.However, if an individual is not on Social Security and does not have any income then he needs to file tax returns for obtaining Stimulus payment.

How to obtain the Stimulus payment?

Mostly, there is nothing much to be done by individuals for obtaining the Stimulus payment. If an individual has already filed his tax returns for 2019, then the Federal Government can easily calculate the Stimulus payment and send it. But, those individuals who have not filed their Income tax returns for 2019 must do it immediately to obtain the accurate Stimulus payment.  In case, if an individual does not file his tax return for 2019 then the IRS would use the 2018 AGI for determination of the payment which must be done as Stimulus payment.

Retirees can receive their Stimulus payment in the same way as they receive their Social security benefits i.e. by referring to Form SSA-1099.  If an individual does have to file a tax return and does not receive Social Security benefits as well, then he can obtain his Stimulus payment by using the ‘Tax Act’s Stimulus Registration’. This can be used to file the Stimulus only return for submission of the necessary information.  

How and by when the Stimulus payment would be received?

The Federal Government would send the Stimulus payment to the individuals by direct deposits. This would make the process faster. However, for those taxpayers who do not have the direct deposit option, the payment would be done by sending paper checks. The Government has started the Stimulus payments on 11th April 2020. According to the latest information, around 80 million payments have been already initiated and the process is going on in full fledge.

Additional information on Stimulus payment

  • The Stimulus payment received by individuals an advance refund or refundable credit based on the income of 2020 and is not taxable.
  • The Stimulus payment will not affect an individual’s refund for 2019 or the anticipated refund for 2020. Moreover, the IRS guidelines also ensure that even if an individual has obtained more Stimulus payment than the amount he qualifies based on his 2020 return he will not have to pay back any money.
  • If an individual has filed his 2019 return without using a direct deposit, he can use the web portal ‘Get My Payment’ to update the direct deposit information for obtaining Stimulus payment.

Hence, in these times of distress caused by the COVID-19 the Stimulus payments or otherwise known as Economic Impact Payments are sure to work as a support for the Americans who have been struggling lately due to economic disruption.

Reference

  1. https://blog.taxact.com/stimulus-payments-everything-to-know/
  2. https://www.forbes.com/sites/advisor/2020/03/27/your-guide-to-the-federal-stimulus-package/#7b7597d02711
  3. https://edition.cnn.com/2020/03/25/politics/stimulus-senate-action-coronavirus/index.html
  4. https://www.nytimes.com/article/coronavirus-stimulus-package-questions-answers.html
COVID-19 Stimulus Payment and Tax Relief for the Self-Employed

COVID-19 Stimulus Payment and Tax Relief for the Self-Employed

by | Apr 5, 2020 | COVID - 19, self employed, Stimulus payment, US Government

COVID-19 Stimulus Payment and Tax Relief for the Self-Employed

Self-employed individuals are those who earn a livelihood by working for themselves. They do not work as an employee for someone else and not as an owner/shareholder of any corporation. Self-employed persons can work for themselves in different trades and occupations such as photography, music, hairstyling, tutors, childcare workers, etc. Professionals like Gig workers, independent contractors, freelancers, and owners of small businesses can be said to be self-employed.

A very important part of the American workforce comprises of self-employed individuals. With the outbreak of the COVID-19, there are a large number of self-employed individuals who are facing economic disruptions. Many of them have either lost their income or are struggling hard to make income.

Let us talk about the various changes made in the tax laws by the Federal Government for reducing the stress of these self-employed individuals during the COVID-19.

 

a.Families First Coronavirus Response Act (FFCRA)

The Families First Coronavirus Response Act was signed into law on 18th March 2020. This Act included certain refundable tax credits which would be beneficial for the self-employed individuals.

1.Qualified Sick Leave

In case a self-employed individual is taking a sick leave from his job due to his health or for taking care of a family member showing up symptoms of being affected by COVID-19. In case of a self-employed individual is willing to claim sick leave credit, the below-mentioned guidelines would be helpful.

  1. If the individual is himself being quarantined due to exhibiting symptoms of COVID-19, he can claim up to ten days of sick pay at his average rate of income whose maximum value is $511 per day.
  2. If the self-employed individual has to take a leave for taking care of a family member exhibiting coronavirus symptoms, he can claim up to 10 days of sick pay at two-thirds of his average rate of income whose maximum value can be $200 per day.

2.Qualified Family Leave

A self-employed individual can claim a refundable tax credit associated with family leave. This family leave can be because of not being able to send your kid to school or daycare as they are closed due to the outbreak of COVID-19. In this case, the self-employed individual would be able to claim up to 50 days of income at the rate of two-thirds of his earning. The maximum value of the average rate of earning in a day can be $200.

These refundable credits offered by FFCRA will be applicable when a self-employed individual is filing his tax returns for 2020 in 2021. The IRS has suggested considering these credits while planning for federal estimated tax payments. The self-employed tax would get reduced by the qualifying credit and hence the funds can be used up now at the times of emergency. Self-employed individuals can maintain records related to virus testing, medical care or school closure for making the claims.

b.Extension in tax deadlines

To alleviate the financial disruption caused by COVID-19, the Federal Government has extended the deadlines for filing tax returns and even tax payments to 15th July 2020. 

For the self-employed taxpayers, the deadline for payment of the first quarter estimated tax has been extended to 15th July 2020. However, the deadline for the payment of second, third and fourth remains unchanged i.e. 15th June 2020, 15th October 2020 and 15th January 2021 respectively.

Even though there has been an extension in the deadline for filing tax returns and tax payment, the IRS advises people to file the tax refund soon as the refund can be obtained on time and be utilized in these times of emergency.

c.Stimulus payment under the CARES Act

The Federal Government would be sending the taxpayers stimulus payments based on their AGI and tax filing status of the year 2019. The Government would consider the tax returns filed for the year 2019 to determine how much a self-employed individual should obtain as Stimulus payment. In case, a self-employed individual has not filed for the year 2019 his tax returns for 2018 would be taken into consideration.

  • If a self-employed individual is filing his tax returns as a single individual and his AGI is below $75,000 then he would receive a Stimulus payment of $1200.
  • In case of filing tax returns jointly as a married couple with AGI less than $150,000, the Stimulus payment received would be $2400.
  • If there is a dependent below the age of 17 years and has been claimed on tax returns, then an additional Stimulus payment of $500 would be obtained.

Hence, with the impacts of COVID-19 affecting the financial lives of the Americans especially the self-employed individuals, it is quite sure that the relief measures initiated by the US Government would bring the stress level of the Americans under control.

References

https://www.taxslayer.com/blog/covid-19-stimulus-payment-tax-credits-self-employed-gig-workers/

https://www.uschamber.com/co/start/strategy/families-first-coronavirus-response-act-guide

https://www.investopedia.com/terms/s/self-employed-person.asp