What you NEED to Know About the CARES Act, Ep #141

The CARES Act—Coronavirus Aid, Relief, and Economic Security Act—is at the forefront of everyone’s mind right now. It’s an estimated $2 trillion relief package with over $500 billion being allocated to individual rebate checks. $500 billion is being dispersed to affected industries, $400 billion for small businesses, $300 billion for state and local government, and $150 billion for hospitals and healthcare systems.That is a LOT of money. In this episode of Best in Wealth, I aim to help you understand what affects you as an individual. I’ll cover who qualifies for a recovery rebate check and how it’s calculated. I’ll also talk about when and how you’ll be receiving the money—and what the government wants you to do with it. Don’t miss this episode that’s packed full of need-to-know information.[bctt tweet="In this episode of Best in #Wealth I dissect what you NEED to know about the CARES Act—and the rebate check you may get. Don’t miss it! #retirement #investing #PersonalFinance #FinancialPlanning #RetirementPlanning #WealthManagement #Coronavirus" username=""]Outline of This Episode[2:13] Every corner of our house is spotless[3:28] Breaking down the CARES Act[5:21] Details on the recovery rebate checks[12:40] How your qualification will be calculated[17:57] WHERE and WHEN will we be paid?[20:16] How else will the CARES Act help?[27:35] Embrace the practice of patienceBreaking down the recovery rebate checkEveryone is eligible for a rebate check. Just let that sink in for a second. Every single adult qualifies up to $1,200 and couples filing jointly up to $2,400 in total. You will receive up to $500 for each child under the age of 17 (NOTE: that does NOT include ages 17 & over). The average family with two children would receive $3,400 in total.Notice how I said "up to" in the previous paragraph. That's because there are thresholds in place—for every $100 you are over the threshold you lose $5 of the rebate check. For an individual, the income threshold is $75,000. If you are married-filing-jointly the threshold is $150,000. Hypothetically speaking, if you are married and have 4 children (with an excluded 17 y/o) you’d qualify for $3,900. If you make $176,000 then you are $26,000 above the threshold. $5 being removed for every $100 is a 5% deduction. 5% of $26,000 is $1,300. So the maximum you would’ve received is $3,900 minus $1,300 = a $2,600 rebate check.Keep in mind this is calculated from your adjusted gross income—so student loan interest payments, IRA or HSA contributions, etc. would be excluded from the calculation.How are they calculating WHO will receive the rebates?If you have filed your 2019 taxes your rebate will be based on your 2019 return. If you have not already filed your 2019 taxes, they will determine who gets the rebate based on your 2018 tax return. If you have not filed and made less in 2019 than you did in 2018—file immediately. If you made more in 2019, hold off on filing your tax return if it puts you over the threshold (but be sure to file before July 15th). Technically speaking, this is a 2020 tax rebate. Luckily, if you’ve already received the rebate check and you file your tax return for 2019 and are over the threshold you won’t have to return the money.The downside is for those who made well over the threshold in 2018/2019 but have since been laid off—joining the 3.3 million people who have already filed for unemployment. Your taxes will indicate that you don’t deserve the rebate check—until you file for 2020. If you fall under the threshold at that point, then you will receive the rebate after filing 2020 taxes.[bctt tweet="How are they calculating WHO will receive the #Coronavirus relief rebate checks? Listen to this episode of Best in