CARES ACT: ASSISTANCE FOR AMERICAN WORKERS, FAMILIES, AND BUSINESSES

Following are assistance items for INDIVIDUALS that are included in the CARES Act & other resources as of Friday, March 27, 2020.

Unemployment Insurance Provisions
Special Rules for Retirement Funds
Rebates and Other Individual Provisions

QUESTIONS/ANSWERS ON REBATE

Q Is the rebate taxable or will I have to pay back any amount if the rebate based on my 2019 return is larger than what it would be if based on my 2020 tax year return?
A No, the rebate is treated like other refundable tax credits, such as the child tax credit and earned income tax credit, and not considered income. Moreover, if the credit amount you qualify based on 2020 income is less than what you qualify for based on your 2019 tax return, it does not have to be paid back.

Q Are individuals with little-to-no income or those on means-tested federal benefits, such as SSI, eligible for a recovery rebate?
A Yes, there is no qualifying income requirement. Even individuals with $0 of income are eligible for a rebate so long as they are not the dependent of another taxpayer and have a work-eligible SSN. In cases where people haven’t filed tax returns but receive Social Security benefits, the IRS can look at statements about those benefits to help get the checks to those people.

Q Are college students eligible for a recovery rebate?
A Only if they are not considered a dependent of their parents. Generally, a full-time college student under the age of 24 is considered a dependent if their parent(s) provide more than half of their support.

Q What should I do if I did not file a tax return for 2019 or 2018?
A The best way to ensure you receive a recovery rebate is to file a 2019 tax return if you have not already done so. This could be accomplished for free online from home using the IRS Free file program here: https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free Our office is also here to assist with preparation of your 2019 return if needed.

Q If I have a past due debt to a federal or state agency, or owe back taxes, will my rebate be reduced?
A No, the bill turns off nearly all administrative offsets that ordinarily may reduce tax refunds for individuals who have past tax debts, or who are behind on other payments to federal or state governments, including student loan payments. The only administrative offset that will be enforced applies to those who have past due child support payments that the states have reported to the Treasury Department.

OTHER RESOURCES

2-1-1 Colorado

A free resource that helps individuals connect to valuable resources, including food assistance, childcare, or rent payment assistance, among others. For more information on programs to help with COVID-19 disaster relief visit https://www.211colorado.org/covid-19/