Answers to Questions About the Stimulus Checks Provided Under the CARES Act

The stimulus checks - the entire amount – is excluded under guidance provided in 2008 via HSG Notice 08-05

Fiscal Year 2008 Economic Stimulus Payments (Tax Rebates) Excluded from Income

The stimulus checks provided under the CARES Act are classified as a tax credit. 

Each qualified family is entitled to a stimulus check, that could total up to $1200, for each adult. Each qualified family entitled is also entitled to a stimulus check, that could total up to $500, for each child that meets the IRS qualifications. 

All of this money is excluded under the regulation even if a single family receives more than $1200. 

Also see the COVID-19 Questions and Answers for MFH posted on HUD's web site on April 16.  

“A: Household stimulus payments of up to $1,200 (which is technically an advance tax credit) (HUD might have said…per qualified person) and the temporary $600 per week federal enhancement to unemployment insurance provided by the CARES Act are not to be included in calculations of income. However, HUD notes that regular payments of unemployment insurance (issued by the state) are treated as income, as is customary under program rules.”

Thanks to HUD for providing the answer as quickly as they did. They have a lot of people working really hard to back up all the property management professionals and residents and we’re thankful to every one of them.  

Thanks, HUD!!!