CARES Act Overview for Individuals

Recovery Rebate for Individuals 

You can think of the recovery rebate as an advance payment of a 2020 tax credit you would typically receive. U.S. residents will receive a full $1,200 rebate ($2,400 married filing jointly) if: They have an adjusted gross income that is not more than $75,000 ($150,000 married filing jointly), a Social Security number, AND cannot be claimed as dependents on another taxpayer’s return.  

Eligible individuals will receive up to $500 per child. For many, no action will be required in order to receive their rebate check. The IRS will be using 2019 tax returns, if filed, or 2018 tax returns, if 2019 is not yet filed. If an individual does not typically file a tax return, the social security benefits Form 1099-SSA may be used instead.  Otherwise, you may need to file a simple tax return to receive the rebate. 

The rebate will be reduced by $5 for every $100 of an eligible individual’s adjusted gross income thresholds. Individuals are not eligible for the rebate if their income exceeds: 

• $99,500 for single 
• OR 146, 500 for head of household filers with one child 
• OR $198,000 for joint filers with no children 

You will receive the payment directly into the bank account used on your 2019 or 2018 return. If direct deposit information is unavailable, the IRS will be releasing information instructing taxpayers what they need to provide to receive payment.  

Additional Notes: 

• If the actual rebate was less than the credit calculated on the 2020 return, the taxpayer will be able to claim the balance of the credit when filing the 2020 return.  
• However, if the advance rebate received was greater than the credit to which the taxpayer is entitled, the taxpayer won't have to pay back the excess. That is because the 2020 credit cannot be reduced below zero (as of right now).  
• IRS will prescribe regulations and other guidance as necessary to carry out the purposes of the credit provision.  

Updated 4/2/2020 at 10:00 AM