Cares Act Stimulus Threshold

Under the cares act the 1 200 payments for individuals phased out at an income of 99 000 and the 2 400 payments for couples phased out at a combined income of 198 000.

Cares act stimulus threshold. Lawmakers agreed on the passage of a 2 trillion stimulus bill called the cares coronavirus aid relief and economic security act to blunt the impact of an economic downturn. The cares act stimulus payments part i. For individuals and families with a qualifying child each of these threshold amounts increases by 10 000 for each additional qualifying child.

In march 2020 u s. The amount of any reduced payment will be based upon the taxpayers specific adjusted gross income. The stimulus package does provide one retirement related perk.

The secure act had temporarily extended the 7 5 threshold for 2019 and 2020 only there is a 10 early distribution penalty for under age 59 ira or plan withdrawals. For a similar reason married couples will face a lower income threshold for receiving the 600 checks. Under the cares act a 2 2tn relief bill passed in march stimulus checks of up to 1 200 were paid out to those eligible in addition to credits of 500 each for dependents aged 16 and below.

If you qualify for a stimulus check your stimulus check may be less than 1 200 because if you have higher adjusted gross income the amount of your check can be lower due to the phase out.