President Trump signed the law on March 27, 2020 in order to provide economic support to individuals and businesses during the economic downturn related to COVID-19.
$1,200 & $2,400 Payments
The law provides $1,200 in a one time payment to individuals that reported less than $75,000 in adjusted gross income (AGI) on their tax return. The payment reduces gradually to zero between $75,000 and $99,000 of AGI. Married couples will receive $2,400 if they report less than $150,000 of AGI. The payment gradually reduces to zero for couples between $150,000 and $198,000 of AGI. Each child will qualify an individual or couple for an additional $500. Ex. A married couple with 2 children earning $134,000 combined will qualify for $3,400 ($2,400 couple + $500 for each child)
The IRS will use your 2019 tax return information if you've filed already or your 2018 tax return if you have not filed yet. You can find your AGI on line 7 of your 2018 Form 1040. You can find your AGI on line 8b of your 2019 Form 1040.
The IRS will begin processing these payments by April 17, 2020. If you've received a refund from the IRS within the past 2 years and that refund was received through direct deposit, your payment will be automatically deposited to that account. If you have not received a refund through direct deposit in the past 2 years, the IRS will mail a check to your last known address.
If you owe back taxes, you are still eligible for the payment. If you owe back child support, your payment will be affected.
The law provides for an additional $600 on top of what your state already pays per week in unemployment benefits. In addition, recipients are eligible for payments for a longer period of time than usual. Finally, contract workers, self-employed, and freelance workers may be eligible. Check with your state Department of Labor to determine your eligibility.