Monday, 30th March, 2020
Last week, the Coronavirus Aid, Relief and Economic Security Act (CARES Act) was passed. This act includes stimulus payments of $1,200 for each individual and $500 for each dependent child, defined by the child tax credit rules as under age 17.
Individuals with adjusted gross income (AGI) up to $75,000 a year are eligible for the full $1,200 payment. It is reduced by $5 for every $100 in income above $75,000, and is entirely phased out at an AGI of $99,000.
Married filing joint couples with AGIs up to $150,000 a year are eligible for a $2,400 payment. The payment is reduced by $5 for every $100 in income above $150,000, and is entirely phased out at an AGI of $198,000. Married couples will also receive an additional $500 for every dependent child under 17.
Head of Household filers with AGI up to $112,500 a year are eligible for the full $1,200 payment and additional $500 for each dependent child under age 17. The payment is reduced by $5 for every $100 in income above $112,500 and is completely phased out at an AGI of $137,000. With one eligible dependent child, a head of household is entirely phased out at an AGI of $146,400.
The IRS will deposit the calculated amount directly into your bank account, or mail a check if there is no bank information on your return, using the AGI and bank information on your 2019 tax return. If your 2019 return hasn't been filed, they will use your 2018 tax return. These payments should be made in about six to eight weeks.
Your 2020 Tax Return: the stimulus rebate is a 2020 refundable tax credit, and the payment received in the next few weeks is an IRS advance on that credit. If your 2020 income is less than 2019 because of layoffs, reduced hours and closed businesses, and your rebate payment was reduced by the income threshold, you'll receive a credit for the difference on your 2020 return. If for some reason, you receive too much of an advanced payment, you don't have to pay back the excess.
Non-Filers: if you did not meet the filing threshold for 2018, you may still be eligible to receive an economic impact payment. See the IRS page for more information.
FRANCHISE TAX BOARD
The FTB has likewise implemented tax relief. Please see their FAQ Page for information and links to specific information.
SMALL BUSINESS RELIEF
Small business owners can apply for payroll protection or EIDL loans modified for COVID-19 relief. Go the the SBA's Corona Virus Relief Page for information and links.