CARES Act Information For Individuals & Families

Direct Relief Payments

• Provides refundable tax credits equal to $1,200 per individual or $2,400 for couples filing
joint tax returns. An additional $500 is provided for each qualifying child under age 17. An individual who is claimed as a dependent on another taxpayer’s tax return is not eligible to receive the $1,200 refund check.

• The credit is reduced by $5 for each $100 of your adjusted gross income that exceeds
$150,000 for joint tax returns, $112,500 for heads of household, and $75,000 for single filers. The rebate completely phases out for incomes exceeding $198,000 for joint filers, $146,500 for heads of household, and $99,000 for single filers.
• The rebate credit is based on 2019 taxes, or 2018 taxes for individuals who haven’t filed for
2019.
• Social Security beneficiaries and individuals receiving welfare benefits, like Supplemental Security Income, will also receive the rebate based on SSA-1099 and RRB-1099 statements.
• Payments will be made through December 31, 2020, and delivered through direct deposit to the accounts previously authorized by a taxpayer or beneficiary.
• There is no income or tax liability requirement, but a Social Security number is required to claim the credit.

Charitable Contributions

• Creates a $300 above-the-line individual charitable deduction for individuals who don’t itemize their returns for tax years beginning in 2020.
• For individuals that do itemize, the measure suspends limits on 2020 charitable contributions, allowing contributions to be deducted up to 100% of adjusted gross income.
• Increases the corporate charitable deduction limit in 2020 to 25% of taxable income, from 10%. A deduction for food inventory contributions would be increased to 25%, from 15%.

Mortgage Payments, Foreclosures & Evictions

• Allows borrowers with a federally backed mortgage – including those that are insured by the Federal Housing Administration, guaranteed by the Veterans Affairs Department, or purchased by Fannie Mae and Freddie Mac – to suspend their mortgage payments for 180 days if they’re experiencing financial hardship due to Covid-19. Borrowers will not accrue
interest or fees during that period.
• Prohibits foreclosures on homes with federally backed mortgages for 60 days beginning on
March 18, 2020.
• Provides up to 90 days of loan forbearance for multifamily borrowers with a federally backed mortgage. Landlords cannot evict tenants or charge fees during the forbearance period.
• Suspends evictions for renters in properties with federally backed mortgages for 120 days.

Pandemic Unemployment Assistance

• Provides an additional $600 per week in “federal pandemic unemployment compensation” to individuals receiving unemployment benefits. The extra payment would remain available through July 31, 2020.
• Allows individuals affected by the coronavirus to receive Pandemic Unemployment Assistance for as long as 39 weeks.
• Provides funding to reimburse nonprofits and government entities that are not part of the state unemployment system for 50% of the costs they incur through December 31, 2020 to pay unemployment benefits. Self-employed and independent contractors, like gig workers, are eligible for Pandemic Unemployment Assistance. Furloughed workers can receive unemployment benefits, and part-time workers are eligible for partial benefits.
• Allows employees that have had their hours reduced to enroll in a short-time compensation programs which provide a pro rated unemployment benefit. States will receive federal funding for 50% of the costs they build in providing short-time compensation through December 31, 2020.
• Allows individuals directly affected by the coronavirus or subject to COVID-related closures to receive Pandemic Unemployment Assistance for as long as 39 weeks, subject to state and federal regulations.

Retirement Plans

• Individuals can withdraw as much as $100,000 from their retirement accounts in 2020 without being subject to a 10% penalty. Funds will be treated as a tax-exempt rollover contribution if repaid in the next three years. If funds aren’t repaid, they would be taxed as income over three years.
• Waives the mandatory minimum distribution rules for contribution plans and IRAs in 2020.