Individual Tax Rebates: How they Work

March 26, 2020 — Blog   

This Post is Now Out of Date.

For the most updated information on tax rebates from the Phase III coronavirus package, CLICK HERE. 

 

Key points: 

-The “CARES” Act ensures that only taxpayers who are actually eligible for cash assistance receives it.

-The process for receiving these funds are simplified for seniors and individuals with disabilities who did not file taxes to ensure they get these dollars quickly.

The details:  

In the CARES Act, the Phase Three coronavirus package, Americans will receive direct cash assistance. In order to receive this federal money, the individual must have a valid Social Security number – meaning that those who receive welfare and Social Security benefits are eligible for this assistance. Individuals who are in the country illegally cannot. CLICK HERE to learn more about what this means. CLICK HERE to learn more about Social Security numbers.

So, how much money will you receive? The full credit amount ($1,200 individuals, $2,400 couples, $500 for children) is available for individuals with income at or below $75,000 ($112,500 for heads of household), and couples with income at or below $150,000. And if you have children, you will receive an additional $500 per child.

Your tax rebate amount will be reduced by $5 for each $100 your income exceeds the above income limits. That means for those without children, an individual will not receive any rebate if their income exceeds $99,000; and the same is true for couples with more than $198,000 of income.