The federal government will be sending money directly to people as part of the recently passed Coronavirus Aid, Relief, and Economic Security Act or the CARES Act. Local leaders can take action now to make sure their residents keep more of those dollars in their pockets that can be spent in the local economy.
The funds being made available to individuals is an advance on their tax refunds for 2021. Those that earned less than $75,000 in 2019 will be eligible for the full $1,200. Couples who filed jointly and earned less than $150,000 will get $2,400. An additional $500 per child will also be provided. If a person earned more than the limits their payment will be reduced by $5 for every $100 of income that exceeds the limit. The IRS will use the information on Form SSA-1099 or Form RBB-1099 to determine the eligibility of retired people for funds. As of now, the timeline for these funds getting out is a few weeks away via direct deposit for those who have filed their 2019 returns. For those who have not filed their taxes in the last two years, the IRS is creating a web-based portal where they can verify where they would like their funds sent. At this time, it is unclear if individuals whose tax refund went to a paid tax preparer in exchange for a rapid anticipation loan or those that had their tax refund sent to a prepaid debit card should verify their information on the IRS web-based portal.
The IRS has created a webpage that will be updated with information about the stimulus payment.
(Read more: CitiesSpeak)
