As the United States continues to battle the spread of the coronavirus, the federal government has passed legislation that will send stimulus checks to most tax paying Americans, including military families.
These stimulus checks are a part of a massive $2 trillion effort to not only assist Americans who are financially struggling amidst this time of layoffs, furloughs, and social isolation, but also to inject funding directly into businesses around America that are continuing to employ people throughout this chaotic time.
The payments heading directly to American families in the coming weeks are projected to reach nine out of 10 households in the country, which means military families can count on receiving these payments despite the military itself not suffering the same sorts of layoffs and reduced employment found elsewhere in the nation. This money can be used to help offset lost spouse income, the cost of buying essential cleaning materials, and the cost of being stuck in your homes on base or elsewhere.
Service members that are suffering financial hardship as a result of being caught between duty stations while executing orders at the time of the Pentagon’s stop-movement order are eligible for other financial assistance provided through the Defense Department. Those payment have nothing to do with the coronavirus stimulus checks the Treasury Department will soon be sending.
So who, exactly, is eligible for a stimulus payment and how much can they expect to receive? We break it all down below.
How much will I receive in my coronavirus stimulus check?
Stimulus payments are based on the recipient’s adjusted gross income, so the Treasury Department can prioritize payments to Americans that are most in need. It’s important to note that basic entitlements like BAH (Basic Allowance for Housing) and BAS (Basic Allowance for Subsistence) are not included in your family’s adjusted gross income. Only taxable income (basic pay) is taken into account for tax purposes.
You can find up to date info on the IRS webpage here.
Coronavirus stimulus payments include:
- A maximum $1,200 per adult
- Up to $2,400 for couples who make up to $75,000
- An additional $500 per each child that is 16 or younger
However, at a certain income level, the payments begin to reduce until a certain point, in which they stop completely.
- Those who make over $75,000 per year individually will see payments reduced by $5 for each $100 in their Adjusted Gross Income over the $75,000 cap.
- Individuals who make over $99,000 per year will not receive a payment
- Couples filing jointly who make more than $198,00 per year will not receive a payment
- Those who file as “head of household” will not receive a payment if their income is about $112,500 per year
- Dependent adults are not eligible for a payment, including college aged children and adults with disabilities
How does the government know how much money I make or how many kids I have?
The Treasury Department will be using 2018 tax returns to assess income level and dependents, as well as the direct deposit information for those who have it in order to deposit the stimulus checks.
What if my income was above $99,000 in 2018, but has since dropped?
These payments are really just an advanced tax credit, so even if you don’t receive a payment because your 2018 taxes showed you as ineligible, you can still receive it as part of your tax return when you file your 2020 taxes.
Do I have to sign up or fill out forms to receive my stimulus payment?
As long as the IRS already has your bank account information from your 2019 or 2018 tax returns, all you have to do is sit and wait for the check to hit your account. However, if you have not yet filed your 2018 taxes, the IRS encourages you to do so as soon as you can, otherwise your payment may be delayed.
The IRS said that they will be building a portal to change direct deposit information in the coming weeks.
What if my family and I are stationed overseas?
As long as you meet the income requirements and have a social security number, you will still receive the payment regardless of where you are stationed.
Will I have to pay taxes on the stimulus payment?
No, these payments are technically considered a tax credit.
What if I don’t have direct deposit established for my taxes?
Your payment will come to you the same way a tax refund would, so if you don’t have a direct deposit account established with the IRS, the check will be mailed to you at the address listed on your tax return.
As new information is released by the Treasury Department, this post will be updated.
