As we see it there are three areas our clients should know about the $2 Trillion stimulus bill signed yesterday: Checks, Retirement Account Changes, and Small Business Relief. Below we’ve tried to list the details and point to some of the best resources we’ve found that could be helpful to our clients.
How much will I receive?
- Individuals who made less than $75k/yr will receive $1,200
- Married couples who made less than $150k/yr will receive $2,400
- Checks will be reduced by $5 for every $100 earned above those limits.
- A credit of $500 will be added for each child under the age of 16
- It appears people with taxable income less than $2,500/yr will not be eligible for the check.
When will I receive my check?
- The timeframe for delivery isn’t clear, possibly mid-April at the soonest.
- If you elect to receive tax refunds via Direct Deposit, you will likely receive it sooner than mailed versions.
What year is my income based on?
- Income is based on 2019’s tax return.
- If you have not filed 2019, it will be based on 2018’s tax return.
RETIREMENT ACCOUNT CHANGES
Below is a good concise set of bullets from financial-planning.com giving a summary of changes to retirement accounts this year. The image links to the article.
SMALL BUSINESS RELIEF
We’ve been working with our banker to figure out the details of what’s available for small business (eligibility, amounts, etc.), and he just sent a pdf from the US Chamber of Commerce that explains them well. If you’re a small business owner, sole proprietor, or self-employed you’ll want to give this a read. It’s the most helpful piece I’ve seen yet. The entire document is below.
Hope some of these details are helpful. Contact us if we can answer any questions.
– Bruce Porter & Tim Porter, CFP®