Coronavirus Aid, Relief and Economic Security (CARES) Act Provisions

For Individuals

Rebate Program:

Financial support for individuals is available in a one-time check or direct deposit, which will be sent from the US Treasury.  The full credit amount is $1,200 for individuals, $2,400 for couples and $500 for children under age 17.  This is available for individuals with adjusted gross income (AGI) at or below $75,000 ($112,500 for heads of household), and couples with AGI at or below $150,000.  There is a phase-out for individuals with AGI between $75,000 and $99,000 and double those amounts for couples filing jointly.  The most recent tax return will be used and you can find the AGI number in line 8 of your return.

To qualify, you must have a valid Social Security number, not be claimed as a dependent by anyone else, and not owe any back child support.  In the coming days, the US Treasury plans to develop a web-based portal to gather people’s direct-deposit information.  This relief money is considered a tax rebate and will not be taxed as income to the recipient.

For a rebate calculator go to:

Student Loans:

Up to $5,250 in student loan payments made by an employer between the date of enactment and the end of 2020 may be excluded from gross income.  Involuntary collections on student loans have been suspended.  For those with federally funded student loans (FedLoan and Navient) payment requirements have been suspended on their loans through September 30 of this year.

Recommended Posts