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How Should You Put Recovery Payment to Work?
You may have received, or soon will receive, a payment from the government as part of the $2 trillion Coronavirus Aid, Relief and Economic Security (CARES) Act. How can you make the best use of what you receive?
First, here’s what to expect: If you file taxes as a single person, you’re eligible for a one-time payment of up to $1,200, but this amount decreases if your adjusted gross income on your 2019 tax return (or 2018 return if you haven’t yet filed for 2019) was more than $75,000, and the payment is eliminated altogether if your income was $99,000 or more. If you’re married and file jointly, you’ll get up to $2,400, reduced for incomes over $150,000 and eliminated at $198,000. You’ll also get an extra $500 for each dependent child under age 17.
So, what will you do with this payment? Here are a few suggestions:
You can find some good uses for your CARES payment – so plan ahead and make the moves that are best for your situation.
This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.
Edward Jones. Member SIPC.
How Should You Put Recovery Payment to Work?Short /Radio version:
PSA: How Should You Put Recovery Payment to Work?
You may have already received, or soon will receive, a payment from the government as part of the financial stimulus legislation. What should you do with the money?
First, know what you’re likely to get. If you’re single, you could receive up to $1,200, depending on your income; if you’re married, you could receive up to $2,400, again based on your income. You’ll get $500 more for each dependent child under age 17.
Of course, you might need the money to pay immediate bills. But if not, you could use it to help build an emergency fund, kept in a liquid account. Ideally, this fund should cover three to six months’ worth of living expenses.
As an alternative, if you feel you’re financially stable, you could use the money to invest for retirement, education, or other goals. Or you might want to reduce some high-interest, non-deductible debts.
Here’s another possibility: Contribute to a charity. As part of the stimulus package, you could claim an above-the-line tax deduction of up to $300.
This is (FA’s NAME), your Edward Jones financial advisor at (Branch address or phone #).
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