The new CARES Act became law on March 27, 2020. This law provides direct payments to many elderly and disabled Hoosiers to be made in April 2020. Our firm will update this article on our website at www.dhblaw.com as information becomes available.
Commonly Asked Questions:
Question: I do not make enough money to require a federal return to be filed. Will I still receive a payment?
Answer: Yes, and you do not have to file a federal tax return. On April 1, 2020, the Treasury Department announced that folks currently receiving Social Security payments who have not filed federal income tax returns for 2018 or 2019 will automatically receive the $1,200 stimulus payment later in April. Payments will be electronically deposited or by check depending on how you currently receive your payment. For low income folks who do not currently get Social Security payments, we strongly recommend you file your 2018 or 2019 federal tax return as soon as possible to get your check sooner. The IRS has free software to allow you to file your 2019 taxes at www.IRS.gov.
Question: My Mom is in the nursing home on Medicaid. Will these payments be treated as income or assets and how can she remain under $2,000 at the end of April?
Answer: No. The payments does not count as an asset for 12 months and may be gifted away without penalty. The payments are structured as refunds of federal income tax returns.
Question: When will the payment be made?
Answer: The Treasury Department is hoping to make a payment of $1,200 to eligible Hoosiers in April.
Question: Does the payment count as income?
Answer: No, the payments are not taxable income.
Question: My mother has moved to an assisted living facility. Do I need to report her new address to the government?
Answer: You should file an IRS Form 8822 (Change of Address) as soon as possible.
Question: Will I get a check in the mail?
Answer: Most folks who file their tax returns electronically or who receive Social Security payments will have their check electronically deposited into their account.
Question: If I owe back taxes or other debt, will by check be reduced?
Answer: No, for individuals with past tax debts, the rebate will not be reduced. Past due child support reported to the federal government can reduce the payment.
Keith P. Huffman
March 27, 2020
Updated April 2, 2020