How Will You Get Your $1,200?
The #1 most talked about award in the government's recovery spending program is the personal distribution of $1,200 to every adult earning less than $75,000 (adjusted gross income, not total income), and another $500 for each child in the household under 17. The question on everyone's mind is, how and when will I receive it? Today let's talk about the how.
The original idea was to issue the money to everyone who files taxes. That's not a terrible idea because it allows on-the-spot means testing, but it does ignore the fact that many young people and even more seniors have income less then their standard deduction, so they are not required to file. Millions legally do not file.
The plans are not final because of this shortcoming. A number of U.S. senators are asking the Trump administration to automatically send it to seniors on Social Security, regardless of tax status. Whether that happens remains to be seen, but meanwhile my advice is - file a tax return this year, regardless of whether you need to.