CARES Act Rebates and Considerations
This week, the Senate and House passed the CARES Act which will provide billions of dollars of relief to individuals, businesses, state and local governments, and the health care system – including rebate checks.
On March 25, the Senate passed a third coronavirus relief package, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act, H.R. 748, the Act). On the afternoon of March 27, the House also passed the legislation and the President has indicated he will sign it.
Based on what we know at this time about this legislation, we recommend careful consideration of your income during the last couple years. If you have income in 2019 that will put you over the threshold for receiving an advance rebate but your 2018 income made you eligible, it may make sense to hold off on filing. The IRS will issue checks based on 2018 income and there won’t be a requirement to pay it back.
Please contact your DS+B advisor to discuss your specific situation or if you have any questions about this legislation.
There may be more tax related developments in the days to come. We are committed to providing you with proactive communications about these as they arise. You can follow DS+B on LinkedIn and Twitter to receive updates as they are made available.
Stay up-to-date on tax and accounting impacts of the coronavirus through our COVID-19 Clarity Center.