On Friday, March 27, President Trump signed the CARES Act into law, providing relief to Americans during this unprecedented event in recent history.

Page 35 of the CARES Act (available to view here) begins the details regarding the relief available to individuals, families, and businesses.

Below is a summary of the rebates for individuals and families described in the CARES Act: 

• Individuals with up to $75,000 of adjusted gross income will receive the lesser of $1,200 or their net income tax liability (with a minimum of $600)
• Joint filers with an adjusted gross income of up to $150,000 will receive the lesser $2,400 or their net income tax liability (with a minimum of $1,200)
  • Taxpayers will receive an additional $500 for each qualified child
  • Rebates will be reduced by $50 for each $1,000 in adjusted gross income above the thresholds listed above, capping out at $99,000 for individuals and $198,000 for joint filers

Other requirements:

• You must have a work-eligible Social Security number
• You must not be a nonresident alien
• You must not be claimed as a dependent
• Estates and trusts are not eligible

Additional information:

• If you have not filed your 2019 tax return, your 2018 tax return will be used to determine your eligibility
• If you have bank account information on your tax return, your rebate will be credited directly to your account in around 3 weeks (source: Treasury Secretary Steven Mnuchin)
• If you do not have bank account information on your tax return, your rebate will be mailed to you as a check, which may take a few months to arrive

We are available to support our clients during this crisis by phone or email. Check our blog soon for additional analysis of benefits from the CARES Act.