CARES Act One Time Direct Payments To Individuals

Written By: David T. Azrin Jay L. Hack Jared B. Foley Beatrice Lesser Kyle G. Kunst Craig S. Tarasoff

03/30/20
person handing over money

ONE TIME DIRECT PAYMENTS TO INDIVIDUALS
Individuals are eligible to receive a one-time payment based on their income level and number of dependents as follows:

How much will I receive?
Individuals filing taxes separately who earn up to $75,000 shall receive a payment of $1,200. For individuals earning more than $75,000, the payment shall be reduced by 5% of the amount exceeding $75,000, so that such an individual earning $99,000 will not receive any payment.

Joint filers who earn up to $150,000 combined shall receive a payment of $2,400. For joint filers earning more than $150,000, the payment shall be reduced by 5% of the amount exceeding $150,000, so that joint filers earning more than $198,000 will not receive any payment.

Individuals who file as the “head of household” and earn up to $112,500 annually shall receive a payment of $1,200. For individuals who earn more than $112,500, the payment is reduced by 5% of the amount exceeding $112,500, so that such individuals earning more than $136,500 will not receive any payment.

All qualifying individuals shall receive an additional $500 credit for each dependent they claim.

Examples: A family of four (filing jointly) earning less than $150,000 combined shall be entitled to a payment of $3,400. An individual filer earning less than $112,500 who has 3 dependents shall be entitled to a payment of $2,700.
The relief is based on an individual’s tax returns. If individuals have filed their 2019 tax returns, the stimulus payment eligibility shall be calculated using the individual’s 2019 tax returns; if individuals have not filed their 2019 tax returns the payments shall be based on individuals’ 2018 tax returns.

Who is entitled to the payment? 
The stimulus payment shall be sent to individuals with valid social security numbers. Individuals who are not otherwise accounted for (i.e. adults and minors who are filed as dependents by others), non-resident aliens, trusts or estates, shall not receive a payment.

When will I get the money? 
Individuals do not need to do anything to get their checks. Most taxpayers will receive a rebate check, but they are likely to get it faster if they have filed either a 2018 or 2019 tax return, and if the IRS has their bank accounts on file where the money can be directly deposited.

about the authors

David T. Azrin

Partner

David T. Azrin represents clients in business law matters, including intellectual property, franchising, employment law, and commercial litigation matters.

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Jay L. Hack

Partner

Mr. Hack’s primary practice focus is providing a full range of legal services to banks and other financial institutions.

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Jared B. Foley

Partner

Jared B. Foley's practice focuses on commercial litigation, white-collar criminal defense, employment litigation, and intellectual property litigation.

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Beatrice Lesser

Partner

For more than 20 years, Ms. Lesser has been counsel to numerous co-ops and condos, individuals and businesses, landlords and tenants, and homeowners associations. Ms. Lesser has been advising them regarding all aspects of litigation in real estate law, contracts, leases, discrimination, restrictive covenants, Loft Law, and other related issues.

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Kyle G. Kunst

Associate

Kyle G. Kunst has litigated commercial disputes throughout the nation in both state and federal courts, servicing a wide array of industries and clients. 

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