April 1, 2020

2020 – 03/31 – Cash payments and tax relief for individuals in new law

A new law signed March 27 provides a variety of tax and financial relief to Americans during the coronavirus (COVID-19) pandemic. The CARES Act provides an eligible individual with a cash payment of: $1,200 ($2,400 for eligible married couples filing jointly) plus $500 for each qualifying child. The payment is reduced by 5% of adjusted gross income (AGI) in excess of: $150,000 for a joint return, $112,500 for a head of household, and $75,000 for all other taxpayers. Under the rules, the payment is completely phased-out for a single filer with AGI exceeding $99,000 ($198,000 for for joint filers with no children and $146,500 for a head of household with one child).