The Impact of the CARES Act on People with Special Needs

By M. Tyler Johnson

On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act, otherwise known as the CARES Act. The CARES Act will provide recovery rebates of up to $1,200 per adult or $2,400 for a couple plus an additional $500 for each qualifying child.

The full rebate amount is available to persons making up to $75,000 and to couples making up to $150,000. For greater amounts the rebate begins to phase out by $5 for every $100 in excess of $75,000 for individuals and $150,000 for couples. Individuals with income exceeding $99,000 and couples with income exceeding $198,000 with no children are ineligible.
Eligibility is based upon income shown on a person’s 2018 or 2019 tax return. According to the IRS, it will calculate and automatically send the recovery rebate to those eligible using the information provided from their last return.

For those who are not typically required to file a tax return, such as those who receive Social Security benefits, the IRS will use the information provided on the Form SSA-1099 in order to calculate and send the recovery rebate.

The Social Security Administration (SSA) announced that for those receiving Supplemental Security Income (SSI) who did not file a tax return for 2018 or 2019 and who did not receive a Form SSA-1099, the SSA will share data on these individuals with the Treasury to notify potentially eligible individuals and provide necessary materials to apply for the payment.
For those receiving Social Security benefits or other benefits or assistance under other federally funded assistance programs, the recovery rebate will not be counted as income and will be excluded from countable resources for 12 months.

For more information, contact our Special Needs Trusts Attorneys: Tyler Johnson at [email protected] or, Andy Deaver at [email protected]