Local 237 Legal Service Plan Update - April 20, 2020

As part of the CARES Act economic stimulus legislation, you may be entitled to a Recovery Rebate.

The Rebate is a one-time payment from the government and goes to individuals depending on their reported income.  The Rebate is an advanced tax credit and does not have to be paid back.

The Rebate goes to individuals who made less than $99,001; to married couples who made less than $198,001; and, to heads of households who made less than $136,501.  The government will look to your 2019 income, if you filed tax returns, or to 2018, and use your adjusted gross income.

To receive the Rebate, you must have a social security number (SSN) and not have been claimed as a dependent on someone else’s taxes.  If you filed your 2019 or 2018 taxes, you will automatically receive your Rebate.  Additionally, if you receive Social Security benefits, Social Security Income, Railroad Retirement benefits or if you are a veteran or their beneficiary receiving VA compensation or Pension benefits, you will automatically receive the Rebate.

The Rebate amount is $1,200 for a single person with no children with income of $75,000 or less.  Married couples with no children and with $150,000 or less will receive $2,400.  Heads of Household with $112,500 of income or less will get $1,200.00.  Each additional dependent child under the age of 17 adds an extra $500 to the Rebate.  Additionally, the Rebate amount is reduced by $5 for every $100 of income over the income levels.

It is not clear when you will receive your Rebate.  However, if you provided bank information on your 2019 (or 2018) tax returns, the money will be directly deposited into your account.  Some people have already received their Rebates but most have not.

The New York State Attorney General has announced that your Recovery Rebate is exempt from debt collection actions.  However, the Rebate is not exempt from child support arrears collection.