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Hello Arkana Friends: What You Need to Know About Recovery Tax Relief
2020 has been a year of unprecedented challenges for individuals, businesses and the economy at large. The COVID-19 pandemic has impacted every aspect of our lives, from our daily routines to how we work and conduct business. As a response to the economic fallout from the pandemic, the US government passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) in March 2020, which provides emergency financial relief to individuals and small businesses across the country.
What is Recovery Tax Relief?
Recovery Tax Relief is a key component of the CARES Act. It is designed to provide financial assistance to individuals and businesses affected by the economic fallout from the COVID-19 pandemic. Recovery Tax Relief is a refundable tax credit, which means it is available even to those who do not owe any taxes.
Who is Eligible for Recovery Tax Relief?
Individuals and businesses that have been financially impacted by the COVID-19 pandemic are eligible for Recovery Tax Relief. This includes:
- Individuals who have lost their jobs or have had their hours reduced due to COVID-19
- Self-employed individuals and independent contractors who have experienced a significant reduction in income
- Small businesses that have been forced to shut down or have experienced a significant reduction in revenue
How Much Can You Receive with Recovery Tax Relief?
The amount of Recovery Tax Relief you can receive depends on a number of factors, including your income, marital status and number of dependents. Single taxpayers can receive up to $1,200, while married couples can receive up to $2,400. Each qualifying child can also receive up to $500. The amount you receive begins to phase out if your adjusted gross income exceeds a certain amount, depending on your filing status.
How to Apply for Recovery Tax Relief?
If you are eligible for Recovery Tax Relief, you will automatically receive the payment via direct deposit or a paper check, depending on how you filed your taxes previously. You do not need to apply for the payment.
Conclusion
The COVID-19 pandemic has had a profound impact on the lives of individuals and businesses across the country. Recovery Tax Relief is designed to provide much-needed financial assistance to those who have been hit hardest by the economic fallout from the pandemic. If you are eligible for Recovery Tax Relief, make sure to take advantage of this refundable tax credit to help you get back on your feet.