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Summary of Tax Provisions Of the 'CARES Act'

By BARRY LISAK
Posted 4/6/20

Last week the Coronavirus Act, Relief, and the Economic Security Act was passed by Congress and signed by the President. The CARES Act will provide a payment for 2020 of $1,200 to individual filers with adjusted incomes of $75,000 or less (or $112,500 or less for head of household), and $2,400 to married couples with adjusted incomes of $150,000 or less. There is an additional $500 credit for each of the "qualifying children" under the age of 17.

For taxpayers with incomes over the $75,000/$112,500/$150,000 income thresholds, the credit is reduced (phased out) by 5% for each thousand. The result is taxpayers who earned more than $99,000 (individuals), $146,500 (head of households), and $198,000 (joint filers) will not receive a stimulus payment. These payments will be based on 2019 tax filings; or on 2018 tax filings, if taxpayers have not yet filed this year. The IRS could start issuing payments within three weeks, said Treasury Secretary Mnuchin.

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