Last Friday, President Trump signed into law the largest stimulus bill in American history, the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act will provide billions of dollars of relief to individuals, businesses, state and local governments, and the health care system suffering the impact of the COVID-19 coronavirus in the United States. Although the program's price tag is $2.2 trillion, the economic impact is expected to approach nearly $7 trillion over the course of several economic cycles. Some of the key provisions include:
One-Time Financial Relief Payments
- All U.S. residents (meaning those that file with an ITIN are excluded, unless they have military service) with adjusted gross income up to $75,000 ($150,000 for married couples) would get a $1,200 ($2,400 for couples) “rebate” payment. They are also eligible for an additional $500 per qualifying child. The payments would start phasing out for earners above those income thresholds and would not go to single filers earning more than $99,000; head-of-household filers with one child, more than $146,500; and more than $198,000 for joint filers with no children.
- The federal government will use previous tax information to determine the amount tax units will receive. If the Internal Revenue Service already has bank account information for a tax unit, it will transfer the money via direct deposit based on the recent income-tax figures it has (2018 or 2019 if filed already).
- People who don’t pay taxes, such as those with very low incomes, may be hard to reach the way the program is designed.
- An excellent FAQ article by the New York Times that goes into greater detail can be found HERE.