CODY — Many people should start seeing checks from the government this week as one of the most direct pieces of a multi-trillion dollar relief package to stem the economic effects of COVID-19.
The federal checks are sent using a simple formula. Just about every person who makes less than $75,000 per year in adjusted gross income will receive $1,200 sent to the address or bank account – for direct deposit – where they received their last tax return.
There are some tweaks to the rules, which is why Luke McNeely, a wealth advisor and an owner of Timberline Wealth Management in Cody, said his company has published information regarding the stimulus package. It has a list of frequently asked questions on the parts of the package dealing with individuals, including direct payments, student loan help and unemployment.
“This is historic and sweeping legislation created to help keep workers paid and employed, allow businesses to remain operational, make necessary health care system enhancements and help stabilize the economy,” the company states.
Timberline Wealth Management lays it out: All U.S. residents or citizens with adjusted gross income under $75,000 ($112,500 for head of household and $150,000 married), who are not the dependent of another taxpayer and have a work-eligible Social Security number, are eligible for the full $1,200 ($2,400 for married couples) rebate.
They are also eligible for an additional $500 per child. A typical family of four is eligible for a $3,400 recovery rebate.
For more information on the rebates and other individual aspects of the CARES Act, visit timberlinewm.com.
People in certain circumstances may need more help to receive their funds.
Some low-income people or those without internet may need help getting theirs, said the director of a University of Wyoming program that helps income-qualifying residents.
“Most Wyomingites could use some extra cash even in the best of times,” said Mindy Meuli, program director of the Cent$ible Nutrition Program in the University of Wyoming Extension office. CNP helps people cook and eat better for less money. “My biggest concern is that those who need relief the most won’t get it.”
People already in the databases at the IRS or the Social Security Administration will automatically get checks.
But many low-income people and some veterans who don’t usually file taxes may need to take action, she said.
Relief checks began being issued April 9 to those who have direct deposit information on file. For those without direct deposit, a paper check may not reach them for months, according to the U.S. Treasury Department.
Low-income people who haven’t filed their 2019 taxes yet can use the IRS’ free filing option on its website to file taxes and will shortly be able to upload direct deposit information to the IRS through a special portal.
“But many in Wyoming don’t have internet access and may be unable to use the form, especially now that libraries and tax assistance groups aren’t fully functioning,” Meuli said.
Plus, many in the state don’t have a bank account for direct deposit of the check. They cash checks at check cashing companies and get loans through credit cards or payday lenders, she said.
“If they don’t have a financial institution they use, they will have difficulty receiving the payment, or it will be delayed,” she said. “They’ll need to set up an account when most banks are closed to human contact. And a permanent address with ID is needed, which may not be possible for everyone.”
UW Extension personal finance specialist Cole Ehmke suggests if you don’t plan to spend your relief check on essential household and family expenses, then consider saving the money.
“We’ve got a long way to go before this situation plays out,” Ehmke said. “Wyoming businesses and local government are going to feel a crunch.”
The coronavirus relief funds will be available through all of 2020. The filing deadline for personal income tax is now July 15.
Details on uploading direct deposit information will be at irs.gov/coronavirus.
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