CARES Act: Calculating your rebate
As part of the recently-passed massive Coronavirus Aid, Relief, and Economic Security (CARES) Act , taxpayers will receive a direct stimulus payment within the coming weeks. This one-time remittance is based on an individual’s 2019 adjusted gross income (line 8b of your 2019 Form 1040) and is considered an advance payment of a refundable credit. If the taxpayer has not yet filed their 2019 tax return, the IRS will use their 2018 adjusted gross income (line 7 of your 2018 Form 1040) to calculate their allowable credit. We’re answering some of the most common questions about the recovery rebate below, including who’s eligible, amounts and questions about dependents. Rebate amounts and qualifications Every United States resident or citizen who filed a tax return in 2018 or 2019 may be eligible to receive a recovery rebate under the CARES Act. Filers are eligible for a $1,200 rebate ($2,400 for married filing jointly) according to the following gross adjusted income parameters:...