Divorced Couples: How Will You Benefit From the Coronavirus Relief Package

by Steve Garelick, CPA/ABV/CFF, CVA, Financial Neutral

When the COVID-19 virus took our economy by storm and required us to work remotely or be laid off or shutter our businesses, Congress signed a $2 trillion dollar coronavirus bill to help Americans through these unprecedented and uncertain times.

Here are some highlights of the rescue package:

• Couples filing jointly, who make less than $150,000 adjusted gross income, will receive up to $2,400
• Single individuals, with an adjusted gross income of $75,000 or less can receive up to $1,200
• If claiming dependents, you may obtain up to $500, per child
• Those without tax eligibility may receive at least $600
• The amount you receive will be based off your 2018, or if filed, your 2019 tax return
• The refund phases out for higher-income brackets by 5% of the exceeded amount over the adjusted gross income
• The funds are non-taxable

For recently divorced couples, the relief funding is NOT automatic:

• Couples who filed jointly last year, but now are divorced, the bank account listed on the return will receive the funds.
• Taking turns, with your ex, in claiming dependents, are based on your terms of the number of dependents you claimed in 2018, or 2019 if filed, and therefore will determine who receives the checks
• Garnished child support will NOT receive payments

If you have questions or concerns on what amount you receive from the coronavirus emergency funding package, make sure to reach out to your financial advisor and or tax preparer.

When you utilize the professional experts in the Los Angeles Collaborative Family Law Association, you can lessen your anxiety and stress because you will know that when your divorce is finalized, each party involved, including your children, will be ready to face the future.

Call the Los Angeles Collaborative Family Law Association today to learn more about how our members can help you and your family understand the benefit of the collaborative divorce process.

Note: This information is general in nature and should NOT be construed as legal/financial/tax/or medical advice. You should work with your attorney, financial neutral, mental health communications coach or tax professional to determine what will work best for your situation.