Economics experts Dagen McDowell, Mitch Roschelle, and Gene Marks answer questions.
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The Treasury Department announced Monday that they expect most Americans who are eligible for stimulus checks under the CARES Act to receive payment by the end of April. Several categories of people, however, will not be getting payments under the coronavirus relief package. Here is a breakdown of who will be left out of this program.
Anyone claimed by someone else as a dependent
Any person listed as a dependent on someone else’s taxes is not eligible for their own stimulus check. This includes both children and disabled or elderly adults whose own children may be claiming them as dependents.
While the CARES Act allows parents to collect $500 for each child, that only applies to children 16 years old or younger. That means that dependents who are 17 or older do not qualify for this even if they are still in school, and if they do not file their own taxes they cannot get their own check.
The CARES Act notes that non-resident aliens are not eligible for checks. Those with green cards as well as H-1B or H-2A work visas can collect stimulus checks. Others, such as temporary workers or illegal immigrants, are not eligible, regardless of whether or not they pay taxes.
The stimulus checks are based on amounts of $1,200 for individuals and $2,400 for joint filers, but they decrease for those whose adjusted gross income surpasses certain thresholds. For individual filers, that mark is $75,000, for joint filers it is $150,000– and for those filing as heads of household, it is $112,000. In those cases, the amount decreases by $5 for every $100 in income above those marks.
This means the payment is less the higher their earnings are, with it being reduced to zero for individuals who make $99,000 or more and couples who make $198,000 or more. For heads of household, the extent to which their payment decreases depends on how many children they have.
The Treasury Department said that tens of millions of people will get their payments via direct deposit by April 15. Those who did not provide banking information with their 2018 or 2019 tax filings will either receive checks that will be mailed out before the end of April, or they can use an IRS online application that will be launching to allow people to provide information for direct deposit.
Eligible people who do not file taxes will be able to enter bank information at this website to get their money faster.
The Treasury Department said they expect most Americans to get their money within the next two weeks. They said they will mail notices of payment to everyone within 15 days of their payments being sent.