The Coronavirus Aid, Relief, and Economic Security (CARES) Act has made available over $300 billion for direct cash payments to most U.S. individuals and families. The rebate will consist of $1,200 per individual ($2,400 for joint filers), plus $500 per child. Payments will be made between now and December 31, 2020, through check or direct deposit information sent to the IRS, and any rebate received will act as an “advance refund” of a credit on your 2020 tax return.
Am I Eligible
- You must be a U.S. resident with adjusted gross income under $75,000 ($112,500 for head of household and $150,000 married filing jointly).
- The IRS will be computing rebates through 2019 tax filings, or 2018 tax filings for those who have not yet filed their 2019 return.
- Social Security recipients won’t need to file tax returns to receive the rebate.
- You cannot be claimed as a dependent on another’s return.
- Dependents are limited to children under 17.
Taxpayers with Adjusted Gross Income (AGI) over $75,000 ($112,500 for head of household and $150,000 married filing jointly) will reduce the rebate amount by $5 for each $100 that a taxpayer’s income exceeds the phase-out threshold. The rebate is completely phased-out for single filers with income exceeding $99,000 ($146,500 head of household and $198,000 for joint filers).
How Quickly Will I Get the Money?
The Treasury plans to create a web-based portal for individuals to provide their banking information to the IRS online, so that they can receive payments as soon as possible.