The CARES Act provides rebates to most U.S. taxpayers, putting cash in the hands of individuals and families to help ease the economic impact of COVID-19.
Any individual who meets the following criteria is eligible for a full $1,200 rebate:
- Reported no more than $75,000 annual adjusted gross income on last federal tax return.
- Cannot be claimed as a dependent by another taxpayer.
- Has a work-eligible social security number.
Individuals filing jointly who meet the following criteria are eligible for a full $2,400 rebate:
- Reported up to $150,000 joint annual adjusted gross income on last federal tax return.
- Cannot be claimed as dependents by another taxpayer.
- Have work-eligible social security numbers.
In addition, individuals filing a single tax return and those filing jointly are eligible for an additional $500 rebate for each child claimed on their last federal tax return. This is also true for those who have no income, as well as those whose income comes entirely from non-taxable, means-tested benefit programs such as SSI benefits.
Cap: The rebate amount will be reduced $5 for every $100 of taxpayer annual income that exceeds the phase-out threshold - which is $75,000 for individuals and $150,000 for those filing a joint tax return.
- Individuals making between $75,000 and $99,000 per year will receive a $1,200 rebate, minus $5 for every $100 they make over $75,000 up to $99,000.
- Individuals filing jointly who make between $150,000 and $198,000 per year will receive a $2,400 rebate, minus $5 for every $100 they make over $150,000 up to $198,000.
- Individuals making more than $99,000 per year and joint filers who make more than $198,000 per year do not qualify for a rebate.
Turnaround Time: The IRS will send rebate checks to eligible taxpayers via direct deposit or paper check within the next month or two.
Application: The IRS will use a taxpayer’s 2019 tax return if it has been filed; if not, their 2018 tax return will be used. Low-income individuals who file tax returns in order to take advantage of the refundable Earned Income Tax Credit and Child Tax Credit are included.
For more information, visit the IRS website.