Attorney Marc Lopez recently spoke to certified public accountant Patrick Wanzer about the new and unprecedented economic stimulus package. What follows is a lightly edited transcript of their conversation.
Marc Lopez
I’m here with my accountant, Patrick Wanzer. He’s agreed to do a little Q&A. This is the first business day after this COVID-19 stimulus package was signed, and I wanted to ask him, Hey, what does this package mean for the average, everyday American? So, Patrick, what is going on with this for the—you know, everyone is exceptional in their own way, but the normal people out there—what does this mean for them?
Patrick Wanzer
The government is going to give you a check for $1,200 per person and $500 per child. Now the things you have to do before we get into a couple of more specifics—you have to have filed either a 2018 or 2019 income tax return. If you haven’t filed in ’19, it’s okay, they will go off of your 2018 return. You also—if you filed by direct deposit—you’ll get your money a lot faster. If not, they’ll have to mail out a check. It’ll take quite a few months to get that out. The IRS has just issued a work-from-home order for all of the IRS employees, as well, so they’re all kind of out there. The practitioner hotline we call has been suspended right now. We can’t even get through right now. So even the IRS is slowing down and being affected by this.
It will take a while if you don’t have direct deposit. It’s okay, it’ll just take longer. But to get back to the specifics—$1,200 per person, if you make up to $75,000. Up to $150,000 if you file jointly with your spouse—that’s the range at which it begins to phase out. And then $198,000 is the phase-out range at which—if your income for married, filing jointly is $198,000, you don’t get any money. And the top range for the single, it is slipping my mind right now, but it’s probably around $120,000-$130,000—something to that effect—where it begins to phase out, and then it reaches that phase-out level, but it’s $1,200 per person and $500 for a qualifying child.
Marc Lopez
Does the average person have to apply for this, or does this just come to them, no matter what?
Patrick Wanzer
If they filed an income tax return, it’s coming to them. They do not have to apply for it. There is nothing they have to do—but again, the government has to have a way of knowing you exist, and that’s with the tax return. So here is the other thing: If you filed an ’18 return, and your income has jumped in ’19, maybe you want to file an extension, and let them go off your ’18 return. If your income was high in ’18, but it’s dropped a little bit in ’19, go off of your ’19 return. It’s the best way for you to maximize your chance to get your $1,200.
Marc Lopez
Absolutely, and thank you again. And then, Patrick, what’s the best phone number for people to reach you at if they have questions?
Patrick Wanzer
Sure, it’s 317-472-2188, or my cell phone at 317-413-7120. Feel free to text, as well. And then [email protected].
Marc Lopez
Thank you so much, and all of this information will be in the comments section and the post section. Thank you so much again, Patrick. It means a lot, you coming out here. I know the first business day after this has got to be crazy for you.
Patrick Wanzer
Yes.
Marc Lopez
It means so much, man. Thank you so much.
