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WHY YOUR STIMULUS PAYMENT IS LESS THAN YOU EXPECTED

WHY YOUR STIMULUS PAYMENT IS LESS THAN YOU EXPECTED

WHY YOUR STIMULUS PAYMENT IS LESS THAN YOU EXPECTED

The good news is that the government reports approximately 130 million stimulus checks have been sent out (as of May 12, 2020). Unfortunately, many people are still waiting for their checks, and even some of those who have received them report their payment was less than the $1200 figure we all heard about. The Neyland Report did some research and we found several reasons your check may be less than expected:

  • Past due child support: If you are behind on child support payments, the government will send you a notice that indicates that your payment may be reduced. This may also delay your payment.
  • Other past due bills: This gets a bit complicated. The Federal government does not protect your stimulus payment from creditors. But some states do have their own laws that would protect your stimulus payment. Here in Louisiana, garnishing of wages (including your stimulus check) is limited to 25 percent of the payment. However, this protection does not extend to past due child support or taxes.
  • Tax returns: Your 2019 tax return is not due until July 15, but if you already filed you may expect a delay in your stimulus payment. That is because the IRS reports it is behind on processing 2019 returns. The income reported on your return can affect the amount of or prompt issue of your stimulus payment.
  • College students: If a college student is claimed as a dependent by his or her parents, no stimulus payment will be issued for the student. However, the IRS stipulates that if the student files a 2020 income tax return and is no longer a dependent, he or she may receive $1200 once that return is processed.
  • Too much income: The maximum stimulus payment goes to those who have an adjusted gross income of up to $75,000 for single filers, $112,500 for head of household filers and $150,000 for married filing jointly. If your adjusted gross income is higher than those amounts, the stimulus check will be reduced by $5 for each $100 above those maximums..

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