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The Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act, is a $2.2 trillion economic stimulus bill passed by the 116th U.S. Congress and signed into law by President Donald Trump on March 27, 2020, in response to the economic fallout of the COVID-19 pandemic in the United States.
If you filed a 2018 Tax Return or later (or gave the IRS your updated information), and made less than $75,000 in income ($150,000 for married couples), you will receive a Stimulus Payment.
If you were receiving a Tax Refund from your 2019 Tax Return and you filed the Return before the July 15, 2020 deadline, if you have not received your Refund since, your 2019 Tax Return will receive interest for being late.
The CARES Act allowed for an additional, “above-the-line” deduction for charitable gifts made in cash of up to $300 ($600 for married couples). This provision is extended into 2021 for taxpayers filing single/separately.
The loan limit for 401k loans has been increased from $50,000 to $100,000.
The Cares Act waives the 10% early withdrawal penalty for 2020 distributions of up to $100,000 for coronavirus-related purposes, retroactive to Jan. 1 2020. Withdrawals are still taxed, but taxes are spread over three years, or the Taxpayer has a three-year period to roll it back over.
The Tax Cuts and Jobs Act net operating loss rules are modified. The 80% rule is lifted, and losses can now be carried back five years.
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