Coronavirus Aid, Relief, and Economic Security Act - Economic Impact Payment

Information about the Economic Impact Payment under the Coronavirus Aid, Relief, and Economic Security (CARES) Act

What is the Economic Impact Payment (EIP)?

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was signed into law in an effort to provide relief for individuals and businesses that have been negatively affected by the Coronavirus pandemic.  The relief includes a one-time payment to individuals to support financial stability during the crisis.  This payment is known as the Economic Impact Payment and has also been referred to as the “stimulus payment” or “recovery rebate.”

Who is eligible to receive the EIP?

U.S. residents will receive the EIP if they are not a dependent of another taxpayer AND have a work eligible Social Security number with adjusted gross income (AGI) up to:

  • $75,000 for individuals

  • $112,500 for head of household filers and

  • $150,000 for married couples filing joint returns

Taxpayers will receive a reduced payment if their AGI is above these amounts and will eventually cap off at adjusted gross incomes of $99,000 and above based on filing status.

Who is not eligible to receive the EIP?

Taxpayers likely won’t qualify for an Economic Impact Payment if any of the following apply:

  • You can be claimed as a dependent on someone else’s return.

    • For example, this would include a child, student or older dependent who can be claimed on a parent’s return.

  • You do not have a valid Social Security number.

  • You are a nonresident alien.

  • You filed Form 1040-NR or Form 1040NR-EZ, Form 1040-PR or Form 1040-SS for 2019.

  • Your adjusted gross income is greater than

    • $99,000 if your filing status was single or married filing separately

    • $136,500 for head of household

    • $198,000 if your filing status was married filing jointly

How much is the EIP worth?

Individuals eligible for the full amount of the EIP based on income (see question 2 above) will receive $1,200 if filing single, married filing separately or head of household.  Joint filers eligible for the full amount of the EIP based on income will receive $2,400. Individuals may also be eligible for an additional $500 per qualifying child.