Clients have been asking about how this complex, comprehensive new law may apply to them. Whilst not everything here may be pertinent to your situation, every client will benefit from some aspect, and the answers to the most common questions are below.
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) is a $2 trillion bill meant to impact both individuals and businesses and contains significant tax-savings measures. It could affect prior tax years while also creating immediate cash-flow.
Impact on Individuals
Perhaps the most impactful provision for American citizens is the CARES Act’s promise of cash payments of up to $1,200 per single individual and $2,400 for a married couple. Parents will also receive an additional $500 per qualifying child. Payments are phased-out for individuals with incomes greater than $75,000 and for married couples filing jointly with income greater than $150,000 up to around $198,000 depending on household size. (Unfortunately, my 18-year-old daughter will not qualify nor will any college students aged 19-23, much to their disappointment!)