CARES Act Payments
The payments will be based on your adjusted gross income (AGI). The IRS will look at your 2019 return, if this has not been filed then they will look at 2018. It is important to understand the any payment received will act as an advanced payment of a credit which you will again compute on your 2020 return. Some people did not file a 2018 tax return because the standard deduction was doubled. If the IRS does not have a tax return for 2018 or 2019, they will determine your eligibility based on your Form SSA-1099, Social Security Benefit Statement.
How Much Money Can You Expect To Receive?
The question is how much money can you expect to receive. As with any tax question, that depends. Not everyone will receive a check. The base amount is $1,200 but it will depend on filing status and AGI. There is also an extra $500 for each child 16 and under. Those on the higher end of the income scale will lose $5 for every $100 your AGI exceeds the thresholds – $75,000 for single, $150,000 for married filing joint.
- Single with no kids – $1,200. It will be eliminated if your AGI exceeds $99,000 ($99,000 – $75,000)*5% = $1,200
- Joint filers with no kids – $2,400. It will be eliminated if your AGI exceeds $198,000 ($198,000 – $150,000)*5% = $2,400