The House Ways and Means Committee released Thursday a rundown of how the individual tax rebates under the coronavirus relief bill will work — and which taxpayers will receive them.
The Coronavirus Aid, Relief, and Economic Security, or CARES Act — which passed the Senate late Wednesday — ensures that only taxpayers who are actually eligible for cash assistance receives it.
The process for receiving these funds is “simplified for seniors and individuals with disabilities who did not file taxes to ensure they get these dollars quickly,” the tax-writing committee explains.
In order to receive the direct federal assistance, the individual must have a valid Social Security number.
Individuals who are in the country illegally cannot, Ways and Means states.
The full credit amount ($1,200 for individuals, $2,400 for couples and $500 for children) is available for those with incomes at or below $75,000 for an individual, $112,500 for a head of household or $150,000 for a couple filing jointly.
The amount will be reduced by $5 for each $100 that income exceeds those income limits, the committee explains.
“That means for those without children, an individual will not receive any rebate if their income exceeds $99,000; and the same is true for couples with more than $198,000 of income.”
— Check out Some Americans Could Hit Snags Getting Stimulus Cash, Planner Says on ThinkAdvisor.