Much of our focus on the CARES Act over the past few weeks has been on the provisions impacting small business owners. We wanted to highlight for you some of the areas within the ACT benefiting individuals and their personal tax situation.
Recovery Rebates for Individual Taxpayers:
The ACT provides a $1,200 refundable tax credit for individuals ($2,400 for joint taxpayers). Additionally, taxpayers with children will receive a flat $500 for each child. The rebates would not be counted as taxable income for recipients, as the rebate is a credit against tax liability and is refundable for taxpayers with no tax liability to offset. The rebate phases out at $75,000 for singles, $112,500 for heads of household, and $150,000 for joint taxpayers at 5 percent per dollar of qualified income, or $50 per $1,000 earned. The rebate phases out entirely at $99,000 for single taxpayers with no children and $198,000 for joint taxpayers with no children (see chart below). For more information please see our newsletter at:
https://www.newburg.com/2020/03/newburg-update-for-03-31-20/
