Check If You Qualify For The Golden State Stimulus Ii
To qualify, you must have:
- Filed your 2020 taxes by October 15, 2021
- Had a California Adjusted Gross Income of $1 to $75,000 for the 2020 tax year. For this information refer to:
- Line 17 on Form 540
- Line 16 on Form 540 2EZ
- Had wages of $0 to $75,000 for the 2020 tax year
- Been a California resident for more than half of the 2020 tax year
- Been a California resident on the date payment is issued
- Not been claimed as a dependent by another taxpayer
- A dependent is a qualifying child or qualifying relative. Go to FTB Publication 1540 for more information about a qualifying child and qualifying relative
To receive your payment, you must have filed a complete 2020 tax return by .
If you dont qualify for GSS II, you may qualify for GSS I.
What About Small Businesses
The CARES Act committed $350 billion to the Paycheck Protection Program . The loan program is for payroll and other expenses through June 30, 2020. Loans may be forgiven if 75% is used for payroll. Other costs covered by the loan include mortgage interest payments, rent, and utilities.
Companies with more than 500 employees are not eligible for the loans. Very small businesses that dont have a relationship with a bank may also be at a disadvantage. Many of these may be mainly cash businesses, like housekeepers and barber shops. That also excludes those firms that have high capital costs and low labor costs. They are concerned that the existing PPP does not reach these small businesses.
Small businesses and sole proprietors could apply to the PPP on April 3, 2020. Independent contractors and self-employed individuals had to wait until April 10, 2020. The Department of the Treasury advised applicants to apply quickly because of the funding cap.
On Thursday, April 16, 2020, the SBA announced that it is unable to accept new applications for the Paycheck Protection Program at this time because it has reached a cap on its funding. Already submitted applications will continue to be processed on a first-come, first-served basis. Lenders were able to begin processing loan applications for small businesses as of April 3, 2020. The Balance is monitoring the situation and will update content accordingly as more information becomes available.
How Do I Know Whether Im Counted As Someones Dependent
Some older people may count as a dependent on someone elses taxes, called a qualifying relative. For example, you may live with your children. In terms of qualifying for a potential second stimulus check, the main tax filer would have had to claim you as a dependent on their tax form 1040 in 2019.
There are a few reasons why some seniors may not have gotten a first stimulus check.
A qualifying relative can be any age. To be counted as a qualifying relative on someones tax return, the person must meet four criteria:
- Do not count as a qualifying child dependent
- Live with the family member all year as a member of their household, or count as a relative who does not have to live with you all year
- Have a gross income for the year of less than $4,200
- Have more than half of your support during the year come from that family member
If you were a dependent on someone elses taxes and were over the age of 16, you were not qualified for any stimulus money at all in the first round of stimulus checks.
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Your Adjusted Gross Income Is Too High
There are three dollar figures to be aware of in terms of the stimulus payments: $1,200 will be given to individual taxpayers, $2,400 will go to married couples filing jointly, and families will receive an additional $500 per qualifying child under the age of 17. Those numbers only apply to certain incomes, though. Individuals with adjusted gross income up to $75,000, married couples filing jointly with AGI up to $150,000 and heads of households with AGI up to $112,500 will receive the full amount of stimulus payments. Keep in mind that AGI will be based on your 2019 tax return, or 2018 if you havent filed yet.
Groups that make more than those AGI figures, however, start falling into the phase out category, which means the stimulus amount granted goes down as AGI goes up. Individuals and households will be paid $5 less per every $100 they make over the limits. The total phase out amounts, meaning the AGI is too much to qualify for a stimulus check, are $99,000 for single filers and $198,000 for married couples filing jointly, or $136,500 for heads of households.
To give you an idea of how the phase out works, here are estimates of stimulus amounts for different filing statuses and income amounts. Keep in mind that each qualifying child under the age of 17 will add an additional $500 to these stimulus amounts. The payment for children begins to phase out , after the payment to adults has completely phased out.
Maximizing Your Stimulus Payment
If youre expecting to receive a paper check, avoid paying fees* on your money by depositing it for free into a Sesame Cash account. Sesame Cash is a no-fee bank account that helps you keep more of your money for things that matter most.
While the fastest way to receive stimulus payments is through direct deposit, if you havent already updated this information with the IRS, it may be too late for this stimulus around. You can update this information when you file your taxes to have future stimulus payments and government benefits automatically deposited into your Sesame Cash account up to two days early! No more waiting for a check!
For recommendations on how to spend your stimulus payment to help maximize the funds, read our guide.
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How Can You Correct Mistakes
The IRS sends out Notice 1444 by mail within 15 days of making a direct deposit or sending a paper check. That letter will tell you the amount of your stimulus payment and how it was made. The letter also provides instructions on fixing issues with your payment.
Don’t Respond to Telephone Calls or Texts About Your Stimulus Check
The IRS will not call, text, or email you about your stimulus payment. The Federal Trade Commission is warning that thieves are posing as government employees to prey on stimulus payment recipients. These scammers may ask for your personal information or threaten you that if you don’t send the money back in the form of money transfers or gift cards, you’ll lose your drivers’ license. Ignore these communications.
How To Make Sure You Receive Your Credits As Soon As Possible
The Recovery Rebate Credit worksheet requires that you know the specific amounts you were supposed to receive, according to the IRS. By doing the investigation and calculation work in advance, youll most likely end up getting your stimulus check and tax refund faster.
To get it correct, that cannot be overemphasized, Steber says. These Recovery Rebate Credits are real cash, and they sent out hundreds of millions in the two tranches. If you did in fact receive it and forget about it, it could add weeks to your tax return timeline.
Your tax refund will be passed more quickly and safely if you electronically file and provide a direct deposit, the IRS says.
Typically, the IRS is good at sending out refunds within a couple of weeks within electronically filing, Bronnenkant says.
Not included in 2020s Recovery Rebate Credit is a third stimulus payment worth $1,400 or more, distributed to Americans beginning in mid-March after President Joe Biden signed the $1.9 trillion American Rescue Plan. Taxpayers will most likely have to wait until 2021 to claim those missing relief payments, Jaeger says.
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Youre Unemployed Now But Your Previous Tax Returns Make You Ineligible
If you already filed your 2019 taxes and are ineligible because you made too much on them, but now are unemployed, youll probably reeling at the idea of not receiving aid in your time of need. Its frustrating, but there is a provision in the stimulus bill that will ensure you get a stimulus checkit just wont be immediate.
If your income suddenly drops this year due to unemployment, or much lower hours or gigs than you worked the year prior, youll be able to claim the stimulus on your 2020 tax return. That means youll have to wait until next year to receive it.
Thats not necessarily helpful for individuals who need cash now. If you need immediate financial assistance, some banks are offering financial assistance to customers experiencing financial hardship due to COVID-19, including payment arrangement programs, mortgage relief and more. Additionally, the Department of Education is suspending federal student loan payments, without interest, until the end of September.
These relief systems wont put money in your pocket now. But they could keep you afloat in the meantime while you search for a work from home job or gig, since most of the country is ordered to shelter in place right now, or successfully file for unemployment.
I Received A Second Payment But My Spouse Didn’t
There have been cases where a couple submit their tax returns as “married filing jointly,” and both spouses are eligible for a $1,400 stimulus check, but one spouse received a payment and the other did not . This is an error on the IRS’s part. Unfortunately, the spouse who didn’t receive a check will have to claim a Recovery Rebate Credit on his or her 2020 tax return. See below for instructions on claiming the rebate on your tax return.
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How Much Will I Get
There are four amounts you may be eligible for from Golden State Stimulus II: $500, $600, $1,000 or $1,100.
The $500 is available to:
- Those who qualified for the first stimulus and claimed a dependent on their 2020 taxes
- Eligible families of those without proper legal documentation
You may get $600 if you:
- Didnt qualify for the first stimulus and did not claim a dependent on your 2020 taxes
And you may get the $1,100 if you:
- Did not qualify for the first stimulus and claimed more than one dependent on you 2020 taxes
The $1,000 amount is only for ITIN filers who qualified for the first stimulus and claimed a dependent on their 2020 taxes. Those filing with a Social Security number are eligible for more funds.
Payments will be made either by mailed check or direct deposit, depending on how you requested your refund on your 2020 tax returns.
American Rescue Plan Act: Your Stimulus Check Questions Answered
The latest COVID-19 relief bill introduced another round of stimulus checks. However, this time with different restrictions. The IRS has already started sending stimulus money into the bank accounts of the recipients. Alloy Silverstein answers some questions you might have about the latest Economic Impact Payments.
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Those Who Didnt File A Tax Return
If you neglected to file either a 2018 or 2019 tax return, you wont receive a stimulus payment. You can still receive one if you file your tax return by Tax Day, which is now July 15, 2020.
Some non-filers may be eligible for payments even if they dont file now. This includes people who did not make enough to file a return. It also includes those receiving veterans retirement, disability, or survivor benefits. If you fall into this category, you can give the IRS your information via its Non-Filers: Enter Payment Info Here tool on its website.
What About People With Itins
You still need a work-authorizing Social Security Number to be eligible for this stimulus. However, there are important changes since the first round of stimulus checks.
- In the first stimulus rollout, any non-SSN holder on a joint return made everyone on that return ineligible. Big change: The new rounds of stimulus has corrected this problem. If you filed a joint return with a non-SSN holder, you are still eligible for the stimulus. See the below hypotheticals.
- Situation: A single tax filer has an Individual Taxpayer Identification Number but no Social Security number .
- This person is ineligible for the stimulus.
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Your Stimulus Check Eligibility Could Depend On Your Taxes
If you’re right on the cusp of the income limits described below, when you file your taxes could make the difference between qualifying for a partial check or not. That’s because a third stimulus check is now arriving during tax season.
The language in the stimulus bill makes it clear that the IRS will base your next stimulus check on your 2019 or 2020 taxes, whichever is on file when it processes your payment. However, the IRS is reportedly delayed in processing new tax returns. If you made more in 2020 than in 2019, time is on your side. The new tax deadline is May 17. If you need more time, you might want to request a tax extension.
At this point of the stimulus check delivery cycle, filing taxes sooner may not be to your advantage. The IRS is prioritizing stimulus check distribution over tax returns, and when the processing happens is outside your control.
If you did already receive your third stimulus check and it was based on your 2019 taxes but you qualified for more with your 2020 return, the IRS will be sending “plus-up payments” to correct the amount between now and Dec. 31, 2021. If you don’t receive your catch-up payment by then, you’ll need to claim it on your taxes next spring.
How To Know If You Qualify
Those who are eligible will automatically receive a stimulus payment from the IRS:
- Tax filers with adjusted gross income up to $75,000 for individuals and up to $60,000 for married couples filing joint returns will receive the full payment.
- If youre single, you could receive up to $1400.
- Single filers with income exceeding $80,000 will likely not receive a check.
- You could see your payment in a matter of days.
If you need more information , please visit the IRS website.
Americans Who Didnt Receive The Full Stimulus Amount That They Were Entitled To
If you received a payment but you dont think it was as much as it shouldve been, you should claim your Recovery Rebate Credit.
Americans should first think back to what they were eligible for from both rounds of stimulus payments. Individuals earning up to $75,000 in adjustable gross income were eligible for the full $1,200 payment in March and the second $600 payment from late December and early January. Married couples earning up to $150,000 were eligible for payments twice that size. Those earners were also eligible for an extra $500 and $600 for every dependent claimed on their taxes.
After that, payments phased out by $5 per every $100 over those income thresholds. This is probably where it gets a bit trickier.
Because the first stimulus check was larger, payments phased out at a later point on the income scale than they did for the second round. Reduced $1,200 checks went out to individuals who made up to $99,000 a year and married couples who earned up to $198,000. In the second round, individuals and married filers were eligible for a partial check up until earning $87,000 and $174,000, respectively.
Its important to calculate first for yourself how much youre owed. Then, compare that with official documents from the IRS showing your stimulus check amount. Those can include the letter accompanying your payment, as well as another special form, Notice 1444 or Notice 1444-B, which most likely came with your first check earlier in 2020.
Individual Taxpayers With Agi Of $80000 Or More Aren’t Eligible
The new stimulus check will begin to phase out after $75,000, per the new “targeted” stimulus plan. If your adjusted gross income, or AGI, is $80,000 or more, you won’t be eligible for a third payment of any amount. However, if you make between $75,000 and $80,000, you could get a portion of the check. You’d receive the full amount if your yearly income is less than $75,000. Here’s how to estimate the stimulus check total you could receive.
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