This is a note to our friends, our clients, and our family on what we know about the Individual Rebate Provisions of the CARES ACT. As of this message, this is not yet law but is expected to be signed by the President and will become law soon.
Many of you have reached out to us because the media has said this bill has passed. This is true, BUT a bill has to pass several layers (i.e. – Committee approval, House vote, Senate vote, and Presidential approval). The media tends to blast “Breaking News” with each passing, BUT that does not mean that it has become law, it simply means that a bill has passed a certain stage in the process.
Here is what we KNOW:
- An individual stimulus rebate is on the way
- You DO NOT need to file your 2019 tax return to qualify
- If you have not filed your 2019 tax return, amounts from your 2018 tax return will be used to determine eligibility
- The proposed rebate equals $1,200 per person ($2,400 for married joint filers) for eligible individuals.
- Individuals eligible for the credit would receive an additional $500 for each child that qualifies for the child tax credit.
- The total proposed credit phases out at a rate of 5% of adjusted gross income (AGI) above $75,000 ($112,500 for head of household filers and $150,000 for married joint returns).
For more information on individual rebates, the government has set up a page on the IRS website. We have provided a link to that page here: https://www.irs.gov/coronavirus
We have heard from many of you through voice mail, email and text messages and apologize that we have not responded back to you directly. We sincerely appreciate hearing from all of you but are still in the midst of tax season and our office is at capacity processing tax returns and getting refunds to people as fast as we can.
Stay safe out there and thanks again for your trust in us!!
Lake Stevens Tax Service
DISCLAIMER: This message is not intended nor can it be relied upon as legal or tax advice and is not an agreement to engage in any type of tax filings, compliance, or advisory service.