Get In Gear Tip: What you need to know about the CARES Act

Get In Gear Tip: What you need to know about the CARES Act

UWM's Get-In-Gear Tips for Navigating the Coronavirus Pandemic

The U.S. government has passed a roughly $2 trillion emergency aid bill into law—the Coronavirus Aid, Relief, and Economic Security (CARES) Act—which is designed to ease the economic distress brought on by the pandemic. Here’s what you need to know about the direct deposit payments to individuals:

Who is eligible?

The annual adjusted gross income guidelines and payment amounts are as follows:

  • Single – $75,000 annually or less will receive $1,200
  • Married Filing Jointly – $150,000 annually or less will receive $2,400
  • Head of Household – $112,500 annually or less will receive $1,200
  • Married and head of household filers will also receive an additional $500 for each child under the age of 17

Payments will decrease for higher income earners, phasing out entirely at $99,000 for single tax filers, $198,000 for married couples, and $136,500 for head of household filers.

Individuals who don’t earn enough to file a tax return but do receive Social Security benefits will also receive the full payment.

For a full breakdown of economic relief by filing status, please visit the Tax Foundation website. Here is an online calculator, courtesy of Kiplinger, to estimate the size of your stimulus funds: How Much Will You Receive

How does it work?

A one-time payment will be disbursed based on your adjusted gross income, as reported on your 2019 federal tax return (or your 2018 return, if you have yet to file for 2019).

The IRS will use the direct deposit information on your 2018 or 2019 tax return to send to your bank account.

If you didn’t provide the IRS with your direct deposit details or you have closed your account, the IRS will mail your payment to you.

When will the payments arrive?

The funds will likely start being disbursed as early as next week via direct deposit.

Mailed checks may take longer.

If the crisis persists beyond the next two to three months, the government would consider a second payment, according to Steven Mnuchin, Secretary of the Treasury.