If you filed Jointly with your spouse in 2019 (or have not filed at all in 2019 and filed jointly in 2018) and are going through the divorce process or have obtained your final divorce, your CARES Act stimulus money can be affected.
What is the CARES Act?
The Coronavirus Aid, Relief and Economic Security Act, more commonly known as the CARES Act, is an economic rescue package aimed at providing stabilization for small businesses and assisting individuals across the U.S.
In general, individuals at income levels less than $75,000 (or $150,000 for joint filers) are set to receive $1,200 tax rebates, with an additional $500 payments per qualifying child.
Under the CARES Act, you might be entitled to a stimulus payment, but if you have filed for divorce and still filed your taxes jointly, the payment will be lumped all into one payment for you, your ex or soon-to-be ex-spouse, and your children.
For instance, if you filed for divorce in 2019 but still filed jointly with your ex in 2019, and you have one child together, subject to some limitations, you may receive a lump sum of $2,900.00. Our understanding of the Act is that the lump sum is deposited into the account which was listed on the 2019 joint return for direct deposit. If that account is your ex’s account, your ex may receive the entire $2,900.00 and you may never know.
How Stanley-Wallace Law Can Help
If you are concerned that your stimulus money may fall into the hands of your ex-spouse or soon-to-be ex-spouse, please contact our team at Stanley-Wallace Law today.
In light of recent events, we are offering telephone and video conference consultations. You will be able to meet with one of our attorneys from the comfort of your home, whether by phone or Zoom video conferencing to discuss your legal issues and next steps.
Email or call us at 985-288-4621 to schedule your consultation, so that we can be proactive in protecting your stimulus payment.