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The CARES Act will provide economic impact rebate payments to many workers and families throughout the nation. But who is eligible, and how can you get the payments? Read my @CLASP_DC blog to learn 10 things to know about the rebate payments: #COVID19 https://www.clasp.org/blog/10-things-know-about-economic-impact-rebate-payments
1. The payments will be $1200 per qualifying adult ($2400 for married taxpayers filing a joint return) and $500 per child under 17 years old. You will *not* need to pay back the IRS because the payments are an advance against a new credit.
2. You can’t receive the $1200 payment if you can be claimed as someone else’s dependent. This will affect many (but not all) full-time college students under age 24. You can learn more about what qualifies someone as a dependent here: https://www.irs.gov/publications/p501#en_US_2019_publink1000220868
3. You don’t need to have earned income to qualify. Even if you are making $0, you can still receive the full payment. The payments phase out at higher income levels, starting at $75,000 for single filers. You can find more about the phase-out rates here: https://crsreports.congress.gov/product/pdf/IN/IN11268
4. You must have a Social Security Number to receive the payments. This will prevent immigrant & mixed-status families from receiving the payments, including many children who are citizens.
5. The payments will be based on your 2019 or 2018 tax returns. If you have not filed a 2019 return, the IRS will use your 2018 return.
6. Most people will need to file a tax return or fill out a new form to receive the payment. Social Security recipients will receive the payment automatically. At this time, automatic payments do not apply to any other benefits besides Social Security, including SSI.
7. The payments will be automatically paid by direct deposit if you provided an account on your tax return. Checks will be mailed if there is no account provided. The IRS will use a web-based portal that allows filers to add their bank account information online.
8. Like other tax refunds, these payments will not be counted toward eligibility for means-tested programs and will be disregarded as an asset for 12 months. This means the payments won’t jeopardize your participation in programs like Medicaid, the SNAP and public housing.
9. The payment can’t be intercepted for past-due taxes, student loans, or Unemployment Insurance over-payments, but it can be intercepted for child support that is owed.
10. The requirement to file taxes to receive the payment will be a barrier for many people - especially given that many VITA sites are closed due to the coronavirus. Public education campaigns and free online resources will be vital for helping people access these payments.
Want to learn more about how to get the economic impact rebate payments? Read more here: https://www.clasp.org/blog/10-things-know-about-economic-impact-rebate-payments
UPDATE: The IRS has just posted the website for non-filers to submit their information to receive their economic impact rebate payments under the #CARESAct https://www.irs.gov/coronavirus/non-filers-enter-payment-info-here
