On March 27, 2020, the House and Senate passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Under this massive bill, there will be $1,200 direct payments to individuals. Qualified dependents increase the payments to families by $500 per qualifying child.
There are multiple rules on the direct payments to individuals. The payments by the IRS will generally be based upon your 2018 or 2019 income tax returns.
Joint Return – A married couple will receive a payment of $2,400.
Children – Each dependent child qualifies for a $500 amount. There are no limits to the number of dependent children. The definition of a dependent follows the IRS guideline that you must provide one half of the support and the child must live with you for one half of the year. Adopted and foster children also qualify.
Limits on Individuals or Married Couples – The $1,200 check to individuals starts to be phased out at $75,000 of income for single filers and is completely...More