The Coronavirus Aid, Relief and Economic Security (CARES) Act provides for a $1,200 one-time direct payment to individuals earning up to $75,000 and $2,400 for married couples earning up to $150,000, plus $500 for each child under 17. The payment is reduced by $5 for every $100 of income above $150,000 for a married couple, $112,500 for a head of household filer, and $75,000 for an individual. The payment is not considered taxable income.
The IRS has not yet announced a schedule of when these payments will be issued. The IRS will provide updated information on its website when this information is available: https://www.irs.gov/coronavirus.
The IRS will use 2019 tax returns to set payment amounts. If you haven’t filed your 2019 taxes yet, 2018 tax returns will be used. When available, electronic deposit will be used in place of mailing a physical check. Electronic distributions will be automatic to an account the payee authorized January 1, 2018 or later.
You must have a Social Security number to receive a payment. Any person who is claimed as a dependent on a tax return is not eligible for a payment. Individuals receiving Social Security, Supplemental Security Income (SSI) or veterans benefits are eligible for this payment. If you have not filed a tax return recently, you are still eligible for the payment though you may need to take additional steps to receive it. The IRS will conduct a public awareness campaign to reach non-filers and provide them with additional information on how they can access the payment.
Further information on the CARES Act can be found through these links: