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IRS CARE ACT FULL GUIDE

Updated: Jan 25, 2021





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.

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