Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”)

March 28, 2020
Stay up-to-date with stimulus details at the IRS website.
Find info on how to identify potential scams related to economic impact payments here.

Eligibility:

  • You must have a Social Security number to be eligible.
  • People who are currently receiving Social Security retirement and disability payments are eligible.
  • People receiving unemployment payments are eligible.
  • Veterans are eligible.

STIMULUS DETAILS:

  • Direct payments of $1,200 to most individuals making an adjusted gross income of up to $75,000, $2,400 for couples making up to $150,000, or $112,500 for head-of-household taxpayers. Each dependent child age 16 years or under increases the amount by an additional $500. The amount decreases for individuals with incomes above $75,000, and payments cut off for those above $99,000.
    • Even as an adult, you are not eligible to receive payment if you are claimed as a dependent.
    • Individual and joint adjusted gross income will be used in calculating payment amounts. The numbers will be determined by one’s 2019 tax return filing. If someone has not prepared a 2019 tax return, it will be determined by the 2018 tax return. If someone has not prepared a 2018 or 2019 tax return, a 2019 Social Security statement may be used to determine your income based on what an employer reported to the IRS.
    • There is no application process for payment.
      • The IRS will disburse payments via direct deposit based on bank account information that you have provided to them in your 2018 or 2019 tax return.
      • Those without a bank account on file should receive checks in the mail, which would take longer.
      • As of now, the fastest way to ensure you get your rebate is to file a tax return and include direct deposit info.
      • If you don’t typically need to file a tax return, the IRS has a new portal to enter your eligibility and direct deposit info: https://bit.ly/nonfilerspaymentinfo. Please contact a tax professional if you have questions or concerns.
      • You can now track your stimulus payment here: https://bit.ly/irsgetmypayment.
    • Payments are scheduled to be disbursed within 3 weeks of bill signing, followed by a mail notice within two weeks notifying individuals of the disbursement and steps to take if you didn’t receive it.
    • Disbursements will not be subject to income taxes.
    • It will be a one-time payment.
  • Info for immigrants:¹
    • There is a Social Security number (SSN) requirement to receive the Recovery Rebate.
    • Individual filers and couples filing jointly must have been issued SSNs that are valid for employment by the time they file their qualifying return. (There is an exception if at least one spouse filing jointly was in the armed forces last tax year, as long as one spouse has a valid SSN.)
    • Children claimed as dependents for the $500 rebate must also have valid SSNs.
    • If both partners in a married couple used an Individual Taxpayer Identification Number (ITIN) to file their taxes, no one in the household is eligible for the return.
    • For mixed–immigration status married taxpayers (where one taxpayer has an SSN and the other taxpayer has an ITIN), the couple would need to file separately in order to claim the rebate for any eligible household members. (NOTE: Filing separately may render a person ineligible for Affordable Care Act subsidies that may be larger than the Recovery Rebate. Taxpayers should consult professional tax preparers about the best options for their unique household situation.)
    • To receive the rebate, taxpayers and any children claimed will also need to be “resident aliens,” which basically means that if they are not a U.S. citizen or lawful permanent resident, they reside primarily in the United States.
  • Expanded unemployment benefits that boost the maximum benefit by $600 per week and provide laid-off workers their full pay for four months. Eligibility is extended to independent contractors and the self-employed.
    • Coverage:
      • People normally eligible for unemployment benefits;
      • Self-employed people;
      • Part-time workers; and
      • Unemployed due to COVID-19-related reasons.
      • People who are unemployed, partially unemployed, or cannot work due to diagnosis of, experienced symptoms of, or seeking diagnosis for COVID-19.
      • People who must care for family or household members who have received diagnosis.
      • People who have been immediately laid off from a new job as a result of COVID-19, and don’t have sufficient work history necessary to qualify for normal unemployment benefits.
      • People who must self-quarantine, as a result of the outbreak.
      • People who rely on school, day care, or other facilities to care for children, elderly parents or other members of their household – and that facility is shut down due to COVID-19.
      • People whose head of household passed away as a result of COVID-19.
    • Received Benefits:
      • Based on state unemployment benefit packages.
      • Eligible workers will receive $600 per week, in addition to state benefits.
      • Workers who are unemployed, partially unemployed, or cannot work due to diagnosis of, experienced symptoms of, or seeking diagnosis for COVID-19 are covered.
      • Workers who must care for family or household members who have received diagnosis are covered.
    • Duration of benefits:
      • In addition to the 26-week unemployment benefit package provided by many states, this bill with add 13 weeks – totaling at a maximum possibility of 39 weeks.
  • $367 billion in loans for small businesses
    • Find a breakdown of this here.
  • $150 billion for state and local governments
  • $130 billion for hospitals
  • $500 billion in loans for larger industries, including $25 billion for passenger airlines; $4 billion for carriers; $3 billion for aviation contractors and $17 billion for “businesses critical to maintaining national security.
  • Creation of an oversight board and inspector general to oversee loans to large companies
  • Measure prohibiting companies owned by President Trump and his family from receiving federal relief
  • $25 million for the John F. Kennedy Center for the Performing Arts
  • $400 million for election security grants

You can calculate your expected payment amount here.

¹ Information Obtained from National Immigration Law Center’s (NILC) “Understanding the Impact of Key Provisions of COVID-19 Relief Bills on Immigrant Communities” (April 1, 2020), available at https://www.nilc.org/wp-content/uploads/2020/04/COVID19-relief-bills-understanding-key-provisions.pdf

This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax or accounting advice. You should consult your own tax and accounting advisers. We do not assume any responsibility or liability for information provided by readers of this notice to the IRS.