CARES Act for Individuals

Update April 18, 2020
CARES Act – Provisions for Participants

Update April 15, 2020
The IRS has opened up a section on the Economic Impact Payments page where you can track your payment or sign up for Direct Deposit.

The following represents a summary of the recently signed into law CARES Act—also referred to as the Stimulus Package.

Recovery Checks – Key Points

Recovery check distribution amounts —Single taxpayers will receive $1,200 and joint taxpayers will receive $2,400. There is an additional $500 for each qualifying child.

The recovery check is considered a credit for 2020, but paid in advance.

The amount is reduced (but not below zero) by 5% of each dollar a person’s adjusted gross income (AGI) exceeds. Consider the following:

• Married filing joint: $150,000 (AGI over $198,000 does not qualify)
• Head of household: $112,500 (AGI over $146,500 does not qualify)
• Single: $75,000 (AGI over $99,000 does not qualify)

Consider the following example:
A married couple with no children has an AGI of $190,000.
$190,000 is $40,000 above the $150,000 amount shown above.
The couple’s check is reduced by 5% of $40,000, which is $2000.
Therefore, they would receive a check for $400. (i.e., $2400 – $2000 = $400)

Other key details for recovery check eligibility include:

• Nonresident aliens are not eligible for the rebate.
• If a taxpayer has an outstanding debt (which the IRS would typically offset a refund by paying that debt), recovery dollars will not be used to offset that debt.
• Amount will be direct deposited into the account on the last filed return. Every taxpayer will receive a letter indicating their recovery check was dispersed. If the letter is not received, there will be a specific phone number to call to have the check re-issued.
• AGI will be accessed from 2019 returns if filed at the time of determination. Otherwise, 2018 returns will be used. Taxpayers who have not filed a return will not receive a check unless they did not file because they only have SSA-1099 or RRB-1099 (social security). The Treasury Department will review those forms for 2019 and issue the appropriate amount via check.