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For those fortunate enough to help the person who has always been there hero. Find The care guides you need to help at AARP dot org slash caregiving brought to you by AARP and the Ad Council Kucher money briefing for Friday March twenty seventh. I'm Jay Waylon for the Wall Street. Journal as part of the two trillion dollar stimulus bill. That looks set to pass Congress soon. The government plans to send out direct payments to US households. You can think of. It is in advance of next year's tax refund not at all as a separate Taxable event for you. That's Wall Street Journal. Tax reporter Richard Rubin coming up. He'll tell us when those checks are going arrive and if there might be more to come in the weeks ahead it's happening wherever cupcakes are being frosted songs are being recorded and engines are being tuned. Adp is designing a better way to work with industry leading. Hr talent time benefits and payroll more companies rely on ADP than any other HR partner from small business to global enterprise. See how ADP can help you. And your people achieve what you're working for at designed. Adp DOT COM ADP always designing for off the two trillion dollar. Federal Stimulus package includes direct payments to most households to help them get through the corona virus pandemic. But when it comes to actually getting your share the devil's in the details. Let's bring in Wall Street Journal. Tax reporter Richard Rubin to discuss so Richard. First of all. When can we expect these checks to arrive? Well first of all. They're not checks for most people they're gonNA be direct deposit payment that's how most tax refunds are paid now as a lot of tax payments are paid now and that's the information the IRS is going to use for people who have direct deposit information on file with the IRS. Especially from the two thousand nine hundred returns you can expect those payments start coming in about three three or four weeks or so but people who don't have direct deposit. Can they still get a payment? Yes absolutely it's not a barrier to getting checked. It just may take longer. It's actually interesting. The government is used to have like the check printing machines and could print lots of checks in Melbourne out. They actually dismantled while that. Because so much has gone electron eq but to the extent that they don't have your information or your bank account Has Changed or something. Then they're gonNA have to go through the process of sending out checks in the mail and that's just GonNa take a little while both to find people particularly people who haven't filed tax returns recently and also to just get addresses and projects in the mail. Now can you just walk us through? How the government will determine who gets what amount yes so. The basic amount is twelve hundred dollars per adult per taxpayer profiler and then five hundred dollars per child and that starts phasing out for people with incomes Starting at seventy five thousand for individuals and one hundred and fifty thousand for married couples now aside from the income factor who would not get a payment. You have to have a social security number to get a payment so if you are maybe someone who's here on a work visa or something and don't have a social security number or your Non-resident or Sending people who were in the country not legally or undocumented or you know wouldn't qualify for that without a valid social number and then also dependence who are non children won't get separate payments so you can think of if your support if an elderly parent living with you. And they're not sort of filing tax returns their own household and they're dependent on your return or you have a college age child someone seventeen or older. Those people wouldn't be eligible for payments. But for those who do qualify. Do they have to sign up somewhere or apply to receive payments? So here's the thing with the little tricky that we don't know yet if you filed a tax return in twenty eighteen or twenty nine thousand nine. You don't have to do anything if you haven't. That's where it gets a little more interesting. I think for people who have social security benefits and haven't filed tax returns that they're going to try and figure out a way as much as they can to work between the Social Security Administration and in irs to get money to those people that the government has that that information that you have to have the systems talk to each other for people who haven't gotten so security benefits. There are plenty of low income people who don't file tax returns. They just don't make enough money for that. Then it gets a little they th you. We'll have to see what the IRS says about whether they're advising people I got to file tax returns or a separate form or what they're going to do For for those people in that category in the irs really isn't saying much about the mechanics of this yet in part because there's only gone through the Senate and so it's not law. The job is to implement the law that Congress lays out in Congress has finished. Its job yet well. The payments be taxable. No not taxable income. Here's how you can think of it. Say Your amount is twelve hundred dollars. You can think of it like a twelve hundred dollar addition to the refund. You would get next year. You're just getting it now or twelve hundred dollar discount off the tax bill you would pay next year in early. Twenty twenty one. You're just getting it now so it's really an advance of you can think of it as an advance of next year's tax refund not at all as a separate taxable event for you. What happens if someone made a sizable amount last year? But their income dropped off in twenty twenty. There's two things that happen. One is if you're above those limits than you would either get a smaller payment or no payment at all right now but you would be able to get a payment on your tax as part of that whole process. So you've maybe you could get the full twelve hundred. The other thing is to remember that this payment is not the only piece of what the government is trying to do here. So the bill. That's working its way through. Congress right now has enormous expansions of unemployment insurance so people who see their income go down because they become unemployed and the definition of that is actually much broader than it used to be. We'll be able to get a lot of money sometimes up to an additional six hundred dollars per week for a few months as a result of that but by going to your state unemployment office and or say unemployment office system online and applying for benefits that way and so you shouldn't necessarily think of these. Irs Payments is the only thing the government is doing for people who really have those income drops due to lapse in employment. There is that other big avenue to Goto now. What if somebody qualifies for a payment based on their income in two thousand nineteen but they have a baby? You know a new deduction this year. You don't get the advance payment for that so that five hundred dollars for child For Tile doesn't come until you file your twenty twenty tax return early next year these upfront payments are based on the two thousand nineteen return and then it gets reconciled on the twenty twenty return but the important point of it that is it doesn't get reconciled downward so if you get more in this initial payment than you ultimately would qualify for based on your twenty twenty income in your twenty twenty family situation. They'RE NOT GONNA COME. Take any of that money back. Is it likely this could be just the first round of payments? We don't know I think that that's going to depend on Congress for sure it's GonNa depend on what happens over the next few weeks with the virus. I mean if we're in a place six four to six eight weeks from now where the economy's still looking fragile. You might see some desire for Congress to do this again if there's sort of better control of the virus and people are back to work sooner than people expect then maybe not the administration had been talking about two rounds of payments but the bill only allows for this first round. Now there are lots of people in the US without bank accounts who might not be able to deposit a check or receive direct deposit. How can they collect payments so they may get checks and you know unfortunately for people who are unbagged You would have to go to some sort of check cashing operation and probably pay a fee. the other possibility is they've there's been some discussion of debit cards And we'll just have to see whether there they can make that work for people or not all right. That's Wall Street Journal. Tax Reporter Richard Rubin Richard. Thanks for coming on the show. Thanks for having me. And that's your money briefing. Im Jr Waylon for the Wall Street Journal..