The CARES Act, Economic Impact Payments And Erroneous Payments
On March 27, 2020, the federal Coronavirus Aid, Relief, and Economic Stimulus Act (the CARES Act) was signed into law. Part of the CARES Act provides for direct payments, called Economic Impact Payments, of up to $1,200 per adult and $500 per qualifying child under 17 depending upon family income. Many people will receive their payment by direct deposit to their bank account. Many will receive a check. But, as with a tax refund received from the IRS, check before spending any of it to make sure you are entitled to the payment and, if so, that the amount is correct. If you were not entitled to the payment, or it was greater than the amount to which you were entitled, you may have a legal obligation to pay it back to the government, whether or not you spend it. The IRS has not provided any guidance on return of overpayments.