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1. Stimulus check or not?
In August 2020, a second stimulus check was approved under the CARES Act to help Americans deal with the effects of the Coronavirus pandemic. This time, college and high school students may qualify for this round of stimulus checks.
Eligibility for a Stimulus Check
Who is eligible to receive a stimulus check?
- Individuals earning under $75,000 will receive $1,200
- Married and joint filers earning under $150,000 will receive $2,400
- Dependents of all ages will receive $500
- The first round of stimulus payments was based on the tax returns of 2018 and 2019. College students under 24 were not eligible to receive it. In this round of stimulus payments, students will be eligible to receive a check in two main ways:
- The college student earned an income in 2019, filed for a federal tax return, and does not claim to depend on anyone else’s tax return. The student also needs to have met all other requirements under the act. Many students are claimed as dependents on their parent’s tax returns, making them ineligible for the $1,200 stimulus payment in cases where they filed a tax return in 2019.
- Students claimed as dependents on someone else’s return qualify for a smaller check of $500. For parents to list a dependent college student, they must be citizens of the United States, US residents, or Canada or Mexico residents. The parent cannot claim them as a dependent if they are married and filed a joint return. Additionally, they must be children under 19 and 24 if they’re full-time students. The student should also not be earning a gross income of more than $4,200
Colleges and universities across the United States have closed their campuses and resorted to online learning to contain the Coronavirus pandemic spread. While these measures have helped protect students from COVID-19, students have been forced to return home, and others have lost their part-time jobs, consequently losing their income. The stimulus check will go a long way in cushioning students during these times of economic uncertainty. It is, therefore, vital to establish whether you qualify for the payments.
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