The IRS announced that payments under the CARES Act will begin in mid-April. We furthermore now have answers to several questions our firm has been asked.
Do I need to do anything?
No, these payments will be automatically deposited in your account by the IRS based on information from your last filed tax returns.
What if my information has changed?
In the coming weeks, Treasury plans to develop a web-based portal for individuals to provide their banking information to the IRS online, so that individuals can receive payments immediately as opposed to receiving checks in the mail.
How much will I receive?
If you make $75,000 or less individually, or $150,000 or less jointly with your spouse, you will receive $1,200 individually or $2,400 jointly. You will also receive $500 for each qualifying child.
What if we make more than $150,000?
If your salaries exceed the income threshold, you will be deducted $5 for each $100 above that threshold.EXAMPLE
If you make $100,000 and your spouse makes $60,000, that is a total income of $160,000, and $10,000 above the income threshold.That excess income of $10,000 is (i) divided by $100; (ii) multiplied by $5, and (iii) subtracted from your $2,400. So, [$2,400 – {(10,000 / 100) * 5}] = a stimulus package of $1,900.
Therefore, mathematically, if you make $99,000 individually or $198,000 as a married couple, you will not receive a stimulus payment.
For more details, please contact us, or visit the following webpage: www.irs.gov/coronavirus.
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California has required employers to “indemnify” employees for “necessary expenditures or losses incurred by the employee in direct consequence of the discharge of his or her duties, or of his or her obedience to the directions of the employer” in substantially the same terms since 1937 under Labor Code § 2802.
