Most of our clients will receive an Advance Rebate of $1200 ($2400 if MFJ) and $500 for each qualifying child (a dependent that qualified for the $2000 tax credit).
The Advanced Rebate is based on the Adjusted Gross Income (AGI) of the 2019 tax return or the 2018, if 2019 has not been filed yet.
The AGI thresholds are: Maximum threshold:
$75,000 for Single, Married filing separately and qualifying widow $99,0000
$112,500 for Head of Household $136,500
$150,00 for Married filing Jointly $198,000
The advance rebate is reduced by 5% of the taxpayer’s excess AGI over the threshold up to the maximum AGI threshold.
If the taxpayer has not filed a 2018 or 2019 return, they will receive a rebate if they receive social security or Railroad benefits.
Advance Rebates will be directly deposited if your tax return indicated direct deposit, or a check will be mailed to the taxpayer’s last known address. In the coming weeks, the Treasury plans to develop a web-based portal for individuals to provide their banking information to the IRS online, if needed.
You will need to keep track of your rebate for your 2020 tax return CARES tax credit.
For further information refer to IRS.gov/coronavirus for updates.