IRS CARE ACT FULL GUIDE

CARES ACT :

The US government introduced the CARES (Coronavirus Aid, Relief and Economic Security) Act because of the COVID-19 pandemic which has impacted the global economy. The CARES Act is a stimulus package that is useful to support and help workers with a one-time payment

The CARES Act is applied for US citizens, permanent residents, and residents for tax purposes (individuals who can pass the Substantial Presence Test) who have a valid Social Security Number (SSN) and who have filed their 2018 tax return (in 2019), or their 2019 return (in 2020) and who will be considered a qualifying resident alien for the 2020 tax year.

• Single individuals will receive a payment of $1,200 whose earning is less than $75,000 per year

• Married couples) will receive a payment of $2,400 whose earning is less than $150,000 and who file jointly

• Families will also get $500 per child from the IRS

Individuals in CARES Act stimulus:

An individual is eligible for this CARES ACT are

1. He/ she should be US Resident for tax purposes

2. He/She shall file a resident tax return (Form 1040) in 2018 or 2019

3. He/ She Will be considered a qualifying resident alien for the 2020 tax year

4. He/she should have an Adjusted Gross Income of between $75,000 and $99,000 (increasing for the head of household and married filing jointly)

5. He/ she shall have a valid social security number

6. He/She should not have been claimed as a dependent on another person’s tax return

Non Resident in CARES Act stimulus:

No Nonresident are eligible for the CARES Act stimulus in the below areas:

1. He/she who claimed as dependent by another taxpayer.

2. An individual who can be claimed as a dependent by another taxpayer

3. An estate or trust

4. Part of a married couple where one partner has an SSN and the other has an ITIN or no number.