The CARE Act
The Care Act gives a relief payment of $1,200 to adults that make no more than $75,000 annually. This applies to couples that make $150,000 annually (in which the relief would be $2,400). Also, each child under 17 years-old amounts to an additional $500 in relief. People who make more than the threshold are still eligible for relief, just at a reduced amount. If an individual makes more than $99,000 annually (for couples it is $198,000) then they are not eligible for any relief even if they have children. These income thresholds are based on the income reported in your 2019 tax return. If you have yet to file a 2019 tax return, then your income is based on your 2018 tax return.
In the middle of April, the IRS will begin directly depositing relief payments to the people who have bank account information on file. This is estimated to take about three weeks to process. As for mail, it is estimated that there are 100 million checks that need to be sent. The IRS can send these out at a rate of about five million per week. So, this process will take about 20 weeks to complete. The order that the checks will be distributed goes from the lowest income to the highest.
The fastest way to get a relief payment is through direct deposit. The IRS is working to create a portal to let people update their direct deposit information but this isn’t expected to happen until late April or early May.
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You can also get more information from our other post.