HOW WE CAN HELP!
Prepare prior year tax returns: While early reports indicate that the stimulus check will be sent based on your 2018 or 2019 tax returns. Preparing your tax returns could be essential to you obtaining your stimulus funds.
Update mailing address with the IRS: Has your mailing address changed? Since checks may be mailed, its important to have your most current address on file with the IRS.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act, H.R. 748, which passed the Senate by a 96-0 vote late on Wednesday, contains a host of tax measures as part of a $2 trillion aid package designed to help the economy as it suffers from the effects of the coronavirus pandemic. While the focus of the legislation is not tax, a large number of tax provisions are included in the over-600-page bill. [Update: The House of Representatives passed the bill by a voice vote on Friday, March 27, and President Donald Trump signed it that afternoon.]
What does the CARES Provide for individuals and families?
Recovery rebates: The bill provides for payments to taxpayers — “recovery rebates” — which are being treated as advance refunds of a 2020 tax credit.
Individuals will receive a tax credit of $1,200 ($2,400 for joint filers) plus $500 for each qualifying child.
Who qualifies as a child for purposes of the rebate? Any child who is a qualifying child for the purposes of the Child Tax Credit is also a qualifying child for the purposes of the recovery rebate. In general, a child is any dependent of a taxpayer under the age of 17.
Phaseout: The credit is phased out for taxpayers with adjusted gross income (AGI) above $150,000 (for joint filers), $112,500 (for heads of household), and $75,000 for other individuals.
Whose not eligible for the rebate:
Individuals who can be claimed as a dependent by another taxpayer
NOTE: Taxpayers will reduce the amount of the credit available on their 2020 tax return by the amount of the advance refund payment they receive.
Is the rebate taxable or will I have to pay back any amount if the rebate based on my 2019 return is larger than what it would be if based on my 2020 tax year return? No, the rebate is treated like other refundable tax credits, such as the child tax credit and earned income tax credit, and not considered income. Moreover, if the credit amount you qualify based on 2020 income is less than what you qualify for based on your 2019 tax return, it does not have to be paid back.