Debate will continue this morning (Friday March 5, 2021) over the latest stimulus bill.
What we know, as of now:
It appears some last minute tweaking is still underway, but a payment of $1,400 for many Americans is still in the plan. There are some changes, however. The latest information suggests the cut-off for individuals will be $75,000 and $150,000 for married couples who file jointly. Previously the cut-offs were set to be $80,000 and $200,000 respectfully.
While President Biden promised $2,000 payments, the White House is now saying that it does total to $2,000 when you combine this one with the previous one. Obviously some folks are a bit perturbed by that answer.
When will it be distributed? The current timeline suggests March 14th.
Families with children should be receiving additional stimulus checks for them as well. The current package suggests $1,400 for every child on their tax returns, including adult children (like college students) and those with permanent disabilities. So a typical family of four with household income under $150,000 would receive $5,600.
What if your income went down last year? Then you need to hurry and file your taxes. IF the IRS processes your new return by the time the payments go out, THAT's the income your payment would be based on. If you don't file right away, it would be based on your 2019 income.
What if your in come went up last year? Then it may be wiser to wait until after the payments, as again, it's based on 2019's tax returns unless they receive this year's prior to the disbursement.
For more information, click here.
While most everyone can appreciate the stimulus benefits that are being doled out. It is still wise to realize this is still a band-aid on a serious financial wound. The financial difficulties don't go away with occasional government payments. They just don't.
If you have found yourself in a difficult financial situation, and realize waiting for government help isn't the ultimate answer, reach out to us for advice. Our office has helped thousands of Tennesseans with financial problems, with counseling, debt resolution, and legal remedies such as bankruptcy if necessary.
Call our office at (731) 423-1888, or visit our website for more information at www.vernersmith.com
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