Head of Household: $112,500 with phase-out up to $136,500 Married Filing Jointly: $150,000 with phase-out up to $198,000 Payments will be reduced by $5 for every $100 above the applicable AGI threshold determined as follows: If you have not yet filed your 2019 tax return, then your 2018 tax return will be used. The Treasury will use Adjusted Gross Income (AGI) from your 2019 tax return to determine your rebate payment amount. Income limitations apply and may reduce or eliminate your rebate payment. Those who cannot be claimed as a dependent in 2020 will receive their rebate payment when filing their 2020 tax return. College students or other adults who can be claimed as a dependent by a parent are not eligible to receive rebate payments. The headline provision of the CARES Act is the tax-free rebate payment of $1,200 to most adults and $500 for children under 17. Therefore, you should discuss with your tax advisor how the legislation might impact your situation and the planning considerations that are right for you. Each person’s tax situation is unique and the proposed legislation will impact each person differently. Please note that the information below is not intended to be legal or tax advice and you should not rely on it as legal or tax advice. We will also be sharing a companion piece, Wealth Planning Opportunities in Volatile Times, discussing planning considerations in light of not only the distressed markets, but the CARES Act and recent tax filing and payment relief provided by the IRS. The focus of this update is on select tax aspects of the legislation for individuals. The bill includes relief provisions related to health care, business, and individuals. In response to the coronavirus pandemic, Congress has enacted the CARES Act (Coronavirus Aid, Relief and Economic Security Act) which has been signed into law by President Trump. Coronavirus relief: CARES Act and tax filing extension
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