Bambridge Accountants New York Guides US Expats on Coronavirus Stimulus Package
NEW YORK, March 30, 2020 (Newswire.com) - March 30, 2020 (Newswire) -The Senate $2.2 trillion stimulus bill to deal with the effects of coronavirus will apply to U.S. expats, reports Bambridge Accountants New York.
Eligibility to claim
- For single filers - if they made $75,000 or less in 2019
- For a couple - if they made $150,000 or less in 2019
If taxpayers haven't filed their 2019 U.S. tax return, they still have time and they should file now.
How much will U.S. filers receive?
The coronavirus stimulus check is $1,200 per adult, plus $500 per child – any child who is a U.S. citizen with a social security number under the age of 17.
Income above the thresholds
Taxpayers can find their adjusted gross income on Line 8b of the 2019 1040 federal tax return.
For every $100 of income above the thresholds, the benefit will be reduced by $5.
Singles:
$75,000 or less: $1,200
$80,000: $950
$85,000: $700
$90,000: $450
$95,000: $200
$99,000+: $0
Married Filing Jointly:
$150,000: $2,400
$160,000: $1,900
$170,000: $1,400
$180,000: $900
$190,000: $400
$198,000+: $0
If taxpayers are above the income limits, they may still get a check for their kids. The payment will be reduced by $50 for every $1,000 earned over the limit.
When and how the payments will be received
Treasury Secretary Mnuchin has confirmed checks will start going out in three weeks. Caution should be applied as payments from the 2008 stimulus package arrived up to eight weeks.
If the IRS has the taxpayer's U.S. bank details, they will send the payment directly to their bank. If they do not hold their U.S. bank account number, they will send out a paper check to the address on their last filed U.S. tax return.
Are the payments recurring?
No, this is a one-off payment. As the U.S. Treasury understands how long the economy will be affected, there may be another bill and further payments.
If taxes are owed will the payments be reduced?
No, this payment is separate to past taxes and will still be paid even if back taxes are owed.
Are the payments taxable or repayable?
The stimulus payments are not taxable, and there are no clawbacks if a taxpayer received the payment and makes over the thresholds in the future.
Alistair Bambridge, partner at Bambridge Accountants, explains: “U.S. expats are all relieved at the news that the stimulus package will support Americans living overseas.
“U.S. expats are struggling with the effects of coronavirus and, as US taxpayers, the checks under the CARES Act will help see them through the pandemic.”
Contact Alistair Bambridge, [email protected], +1 646 956 5566.
Bambridge Accountants has offices in London and New York, specializing in U.S. expats around the world.
Source: Bambridge Accountants New York
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Tags: American abroad, American overseas, coronavirus, Covid-19, expat, IRS, Mnuchin, overseas, stimulus check, taxes
