On March 30, 2020, in response to the COVID-19 (novel coronavirus) pandemic, the Treasury Department and IRS announced the distribution of a $2 trillion stimulus package payments to account for the coronavirus pandemic. This is the largest stimulus bill in U.S. history.
Payments are intended for U.S. taxpayers only and you will have to have a social security number in order to qualify. Additionally, there are some income restrictions which may impact the total amount individuals may receive. Funds will be deposited via direct deposit based on the income information from your 2019 tax return. If you did not file yet for 2019, then your 2018 tax filing will be used.
Those going through a divorce may be left with some questions. For instance, what if you have separated but are not yet divorced? If you have filed jointly in the past but have since separated, it is best to file your 2019 tax returns as soon as possible.
What if your divorce was filed but not yet final? Typically, courts treat tax refunds as a marital asset to be divided either pro rata based on the respective income of the parties or divided equitably. If you have a stipulation of settlement, you should check the tax refund provision of your agreement. If your agreement does not specify who will receive any tax refunds, you should contact your attorney, as he or she might be able to negotiate an addendum to address this issue. If you have a child or children, you can be reasonably confident that whoever claimed the child on his or her tax return, will receive the $500.
Experienced New York Divorce Attorney
Filing for divorce can be challenging and is even more so during the COVID-19 (novel coronavirus) pandemic. Book a confidential consultation with an experienced New York divorce attorney today. The Mandel Law Firm has been expertly representing New Yorkers, guiding them through the divorce process. To book your consultation, give us a call at 646-770-3868 or send us a confidential message through our website.