ABSTRACT

COVID-19 and Direct Payments to Individuals: Estimated Impact of Recovery Rebates in H.R. 748 on Family Incomes [Updated March 26, 2020]   [open pdf - 858KB]

From the Document: "H.R. 748 (CARES Act), as passed by the Senate on March 25, 2020, includes many provisions designed to provide emergency relief to the economy in response to the effects of the COVID [coronavirus disease]-19 pandemic. One such provision of H.R. 748 is the '2020 recovery rebate,' a direct payment made to individuals. Similar 'recovery rebates' were sent to individuals in response to the 2001 and 2008 recessions. Several Members of Congress have recently proposed varying forms of direct payment, and two earlier versions of the CARES Act (S. 3548 and a draft circulated on March 22, 2020) also included a direct payment proposal. The direct payment in H.R. 748 is structured similarly to the 2008 recovery rebates. The rebate takes the form of an advance refundable tax credit, and would rely on the tax system to pay the credit to eligible individuals. As such, this Insight refers to eligible individuals as 'taxpayers.' In general, taxpayers would be eligible for a rebate of $1,200 ($2,400 if the taxpayer is a married couple filing jointly). Taxpayers could increase the amount they receive by $500 for each child that they could claim for the child tax credit. The rebate amount would gradually phase out for higher-income taxpayers. H.R. 748 includes other provisions related to the timing of rebate payments, the information used to determine the rebate amount, and administrative challenges related to paying the rebate."

Report Number:
CRS Insight, IN11270
Author:
Publisher:
Date:
2020-03-26
Series:
Copyright:
Public Domain
Retrieved From:
Congressional Research Service: https://crsreports.congress.gov/
Format:
pdf
Media Type:
application/pdf
URL:
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