ROCHESTER, N.Y. (WROC) — Lynn Mucenski-Keck, a partner with The Bonadio Group, discussed the impact of the CARES Act for individuals Monday during News 8 at Sunrise.
Mucenski-Keck said based upon your 2018 or 2019 tax return information single filers with an adjusted gross income of less than $75,000 will receive a check for $1,200. Married filing jointly filers with an AGI under $150,000 will receive a check for $2,400.
She noted the funds for single filers phase out between $75,000 and $99,000. The funds for married filing jointly filers phase out between $150,000 and $198,000.
Social Security recipients will automatically receive economic impact payments. If you have not provided your direct deposit information, the U.S. Treasury Department plans to develop a web-based portal for individuals to provide their banking information to the IRS online.
Mucenski-Keck said for IRA and retirement plans, Required Minimum Distributions (RMDs) are suspended for 2020. If you received a distribution in the last 60 days you can return it.
There will be no 10% early withdrawl penalty for coronavirus-related distributions up to $100,000. Coronavirus-related distributions are defined broadly to include a family diagnosis of COVID-19 or someone who experiences adverse financial consequences. The distribution can be taxed ratably over a three year period or may be taken as a loan and repaid within three years.
For more information visit bonadio.com/covid-19.