In order to alleviate some of the economic hardship created by the pandemic, the government enacted a variety of remedies, including sending individual checks to millions of Americans. If you are divorced, you may get more than you expected – or nothing.
Individuals who earn less than $75,000 will receive a check for $1,200. Individuals who earn between $75,000 and $100,000 will receive a reduced amount. Individuals who make $100,000 or more will not receive a check. If you can file as head of household, full payments will go to those who earn up to $112,500.
If you have children, you could receive additional money. Specifically, for each child you have under the age of seventeen, you will receive $500 per child. Obviously, both parents cannot claim a child to obtain a bigger check. As with the federal child tax credit, the parent who has custody of the child for the majority of the time during the tax year will receive the credit for the child.
Checks will be delivered either electronically or by regular mail. To assure quicker delivery, you would want to use direct deposit. If you have set up direct deposit to receive a refund, you may already be set. If you would like to do so, you can at the IRS website.
If you are currently behind on child support and under an arrearage order, you will not receive a stimulus check – that money will go to your former spouse to cover your arrearage.
Those who receive a check will not have to classify it as income, as it operates as a tax credit. It is unclear at the moment if you receive a refund next year for the tax year 2020 or whether your refund will be reduced by the stimulus check.
If you operate a small business, the government also has resources under the CARES Act. These loans could help you stay afloat financially, and also help you meet your support obligations as well. We encourage you to go to the SBA website and see if you would qualify.
If you have questions about stimulus funds and divorce, contact us – we can help.