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Coronavirus Aid, Relief, and Economic Security Act (CARES)

On March 27th 2020, the government signed the Coronavirus Aid, Relief, and Economic Security (also known as the CARES) Act into law. The purpose of this Act was to provide assistance to individuals and businesses during the ongoing Coronavirus pandemic and economic crisis. This Act will provide roughly $2 Trillion in financial aid to help offset some of the struggle that is occurring because of the Coronavirus and the volatile market. There are many parts of this Act that include: Unemployment provisions, recovery rebates, retirement plan provisions, student loans, and business relief.

Part of this Act includes a recovery rebate which is a direct payment from the government to individuals. The amount people get will vary as it is based off of your 2019 Tax returns. If you have not filed your 2019 tax return then it will be based off of your 2018 tax return. The initial amount starts at $2400 for married filing jointly, and $1200 for individuals. This amount increases by $500 for each qualifying child. Not everyone will be receiving this aid though. There is an income threshold were the amount starts to be reduced and then it is eventually nothing. 

Read this article to learn more about the many parts of the CARES Act. You can also reach out to Peter O'Brien if you have any questions or want to speak to a financial professional during this time.