The COVID-19 CARES Act has passed, 5 things to know

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The Coronavirus Aid Relief and Economic Security Act better known as The CARE act was passed on Friday, March 27th, 2020. The act was passed in an effort to aid businesses, individuals and stimulate the Economy during these difficult times. Here are 5 things you may want to know:

1. How to apply for the CARE Act

You don’t have to, the CARE act is based on your most recent tax return. Meaning that if you have yet to file your 2019 tax return the IRS will go based off of your 2018 return. IF your financial situation has changed since the previous tax year it may be beneficial to file your return as soon as possible to ensure that the current income is taken into account.

If you currently rely on Social Security your relief check will be based on the most recent SSA-1099 form submitted to the Social Security Administration.

IF you receive your tax return refund and social security check through direct deposit your stimulus check will also be deposited in the same way, if not it will be mailed to the last address listed on file.

2. Maximum Amount

The maximum amount each individual will be able to receive is $1,200, with an additional $500 per dependent. The CARE Act is limited to individuals who have an Adjusted Gross income less than:

  • > $99,000 if you’re an individual
  • > $146,500 if you’re the head of your household
  • > $198,000 if you’re a married couple filing a joint return.

If you fall closer to these income brackets listed above chances are you may not be receiving as much in your relief check, but will still qualify for some help.

3. The COVID-19 check is non-taxable

The relief check is not considered taxable income, but it will have to be accounted for on your 2020 tax return to confirm that you had received the correct amount.

4. Additional Unemployment help

If your job has been affected by Covid-19 and you are now unemployed you qualify for an additional $600 per week for up to 4 months in addition to your unemployment benefits.

5. Other relief help

In addition to the COVID -19 relief check, and CARE Act, the Senate has also passed the following in the Coronavirus Stimulus bill:

  • Student loan help: Student Federal loans can be deferred until September 30th if you reach out to your loan servicer.
  • Early Retirement Distribution: If you need to withdraw additional funds you may tap into your retirement savings without being charged the 10% early distribution penalty.
  • Defaulted Debts: Actions regarding the collection of defaulted debts have currently been suspended until further notice, which may also buy you a little more time.

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