In the coming months, many Americans will receive a stimulus check from the federal government. The check comes from the passage of the Coronavirus Aid, Relief, and Economic Security Act also referred to as the CARES Act. The CARES Act seeks to alleviate the financial impact of COVID-19 on many individuals as well as stimulate the economy by providing qualified Americans with some amount of money.
As a result, many are wondering how divorce will affect their stimulus check, including how much they may receive and where this money will be deposited. Our skilled attorneys can answer these questions and address any other concerns you may have about how the coronavirus could impact your divorce proceedings.
Stimulus checks will be delivered through direct deposit to the bank account listed on your 2019 tax return. If a person or joint couple has not yet filed their 2019 tax return, the IRS may then use the bank account listed in their 2018 return. This remains true for individuals who filed jointly in 2018 or 2019 and are currently divorced.
For those who have yet to file their 2019 taxes and have recently divorced, quickly filing taxes with your updated status as single may inform the IRS with your new information in time. Stimulus checks deposited to couples currently going through a divorce may need to divide them as they would any other asset. Because of this, it is important to keep track of information about your stimulus check, including where it was deposited, and the dollar amount listed.
Individuals who filed separately on their 2019 or 2018 tax return and reported up to $75,000 Adjusted Gross Income (AGI) may qualify for $1,200. Similarly, couples who filed jointly with a reported $150,000 AGI or less may receive $2,400. The amount that an individual or couple may receive will decrease incrementally based on the reported AGI above these limits. Individuals claiming a child under 17 as a dependent may also qualify for an additional $500.
In general, the amount and where your stimulus check will be deposited depend on your most recent return. As a result, various options may be available to you and your ex-spouse. To learn more about how divorce could affect your COVID-9 stimulus check, contact our team today. An experienced divorce attorney from the Atlanta Divorce Law Group can guide you through your options and help you collect your check.