5 groups of people who will not receive a reminder check


It has been 22 days since the House of Representatives passed away and President Trump signed the law, the largest stimulus bill in U.S. history. The Coronavirus Aid, Rescue and Economic Security Act (CARES) totals $ 2.2 trillion in aid and is a direct response to the unprecedented economic and labor market turmoil of coronavirus disease 2019 (COVID -19).

Although the CARES law contains many provisions to support a struggling economy – including $ 500 billion in loans to struggling industries, $ 350 billion in small business loans and even $ 260 billion to strengthen the unemployment program – it is the whole of 300 billion dollars apart from direct stimulus payments to working Americans and seniors who have received the most attention.

A handful of banknotes placed at the top and partially covering a US Treasury check.

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It is estimated that somewhere in the neighborhood of 140 million American households will receive an economic impact payment – or, as most people know, a “stimulus check.” The largest number of single filers and married couples who file jointly can expect to receive $ 1,200 and $ 2,400 respectively, with incentives recipients potentially able to compensate an additional $ 500 per eligible child aged 16 and under.

But at the other end of the spectrum, there are millions of Americans who will not get a dime from this $ 2.2 trillion coronavirus rescue package. Here are five groups of people who will likely not see any stimulus payments.

1. High incomes

The first group of people who will not receive a stimulus check is the one who earns too much money. As highlighted in the CARES Law, single taxpayers earning more than $ 99,000 in adjusted gross income (AGI), married couples depositing jointly with more than $ 198,000 in AGI and declaring heads of household exceeding $ 136,500 in AGI do not are not eligible for an economic impact Payment.

However, there is a small problem with this rule. The Internal Revenue Service (IRS) determines the eligibility of stimulus checks by the most recent tax records of an individual or a couple. If, for example, you earned $ 70,000 in AGI as a single filer in 2018, but $ 125,000 in AGI in 2019, you can choose to delay filing your 2019 taxation year until July 15, 2020 (Tax Day has been pushed back three months due to the coronavirus pandemic.) This would allow your 2018 taxation year to dictate your eligibility, giving you a $ 1,200 stimulus check. This capture will not apply to very many high-income people, but it is a possibility.

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2. Dependents 17 and over

Another large group of people excluded from stimulus payments are dependents aged 17 and over. Although dependent children aged 16 and under can pay their parents a payment of $ 500 per child, junior and senior high school students, dependents up to the age of 24 and elderly dependents will not be eligible for payment.

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3. Most non-citizens

According to data from the American Community Survey of the US Census Bureau between 2008 and 2018 via the Kaiser Family Foundation, there are approximately 21.7 million non-citizens living in the United States, of which 16 to 17 million are probably adults. aged 18 and older. For many of these non-citizens who do not have a valid social security number, no stimulus payment awaits. It also excludes undocumented immigrants from receiving a payment of $ 500 per child, assuming that their children aged 16 and under are American citizens.

The exception to the rule is green card holders. These people, who have a legal route to permanent residence in the United States, are likely to receive an economic impact payment.

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4. Those who are behind on child support payments

Are you behind on your student debt or owe the federal government back taxes? Surprisingly, this won’t stop you from receiving a coronavirus stimulation test. However, if you are behind on your child support payments, the Department of the Treasury is entitled to withhold part or all of your stimulus payment to help offset your child support obligations.

As with the other categories so far, there is one problem – that each state must share information with the Treasury Department about people who are behind on their child support payments. If a state doesn’t report recoveries due to the Department of the Treasury, we might see cases where people who are behind on child support payments receive a stimulus check in a state, while people whose child support is children are overdue in other states don’t get a dime.

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5. People who owe money to their bank

Finally – and I fully accept that this is a fairly broad and somewhat vague umbrella – people who owe their bank money may not see any of their stimulus payments. There is specific language in the CARES law that prohibits federal and state debt collectors from seizing economic impact payments to cover outstanding debts, but banks, which are private debt collectors, are not not guided by these same rules. Since the stimulus check is a tax credit and not a federal benefit, it gives banks the right to use that money when it is deposited into your account to meet what you owe.

What could banks use your stimulus check to cover? In theory, anything. Everything from an overdraft fee to an outstanding loan is a fair game for your bank to use your stimulus payment to offset what you owe.

The big question is whether the banks will actually use this tactic to offset consumer debts. Among the major banks, only JPMorgan Chase and Wells fargo have so far said they would not use stimulus payments to offset customer debts. This probably casts doubt on the tens of millions of people who don’t do business with JPMorgan Chase or Wells Fargo.


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