SUMMARY
In an effort to alleviate the economic burden caused by COVID-19, the Federal Government has passed the CARES Act, which will allow the Treasury Department to send you a payment if:
- you meet the eligibility criteria;
- you fall within the income cap; and
- you have filed a tax return or you already receive Social Security benefits.
If you filed a tax return in 2018 or 2019 or you receive Social Security benefits and you meet the eligibility levels below, you do not need to apply for this benefit; you will receive it automatically.
ELIGIBILITY and PAYMENTS
- If you are a U.S. resident, dependent, or estate, with adjusted gross income up to $75,000 as an individual or $150,000 for married couples you will be eligible, and you will receive a payment of $1,200 for individuals, $2,400 for couples, and $500 per dependent child under 17.
- The payments will phase out for earners above those income thresholds, and stop at:
- No payments to single filers earning more than $99,000;
- No payments to head-of-household filers with one child & adjusted gross income of more than $146,500; and
- No payment to joint filers with no children and adjusted gross income of more than $198,000.
- Your income is based on your 2019 tax return; if you did not file taxes in 2019, the Treasury will use your 2018 tax return. If you did not file a tax return in either those years, the Treasury can use your Social Security benefit information or you will have to file a tax return. You can find out how to file a return for free at www.irs.gov.
HOW and WHEN WILL PAYMENTS BE MADE?
- Payments will be made as fast as possible but may take over a month.
- If you filed a tax return in 2018 or 2019, or you receive Social Security benefits, you will receive the rebate automatically.
- If you provided bank account information to receive your tax refund as a direct deposit, you will receive your rebate that way.
- If you did not provide information for direct deposit, you will be mailed a rebate check to the address provided on your 2018 or 2019 tax return, whichever you filed most recently.
- If you did not file in 2018 or 2019, but you receive Social Security benefits, you will receive the rebate the same way you receive your Social Security benefit.
- After the payment is made, you will receive a notification in the mail from Treasury within 15 days.
The “2020 Recovery Rebates” program is established by Title II (Sec. 2201) of the CARES Act.
IMPORTANT NOTICE FROM NEEDLEMAN MANAGEMENT
Needleman Management presents this information as a service to our tenants, clients, vendors and contractors as an informational resource only. We do not claim to be lawyers, accountants or tax professionals. We present this material for informational purposes only and is based solely as our best understanding at this time. We accept no liability for any action based on this information nor for any errors or omissions. We strongly suggest that you discuss the material provided herein with your legal and tax professionals.
The full 880-page CARES Act document can be found here.
Last Updated: March 29, 2020
LAST UPDATED: March 29, 2020