Thank you Dan
- Stimulus checks, up to $1,200 per adult and $500 per child as described in this post. Many already received these funds direct deposited into their bank on their 2018/2019 returns. Others will get checks in the mail. Even non-filers are entitled.
- Unemployed benefits of $600 per week for up to 4 months, on top of state benefits. Also extends unemployment payments from 26 to 39 weeks. These will not only cover regular employees, but also gig economy and other self-employed workers who lose work due to coronavirus! This will run through 12/31/20.
- Many banks, credit cards, and companies are allowing payment deferrals without interest or penalties for consumers who ask for them. The new law won’t allow negative marks on your credit report due to taking advantage of these programs.
- Small businesses can apply for an emergency grant of up to $10,000.
- The SBA will distribute $350 billion in forgivable loans, up to $10MM per small business equal to 250% of an employer’s average monthly payroll, on favorable terms with no collateral needed. To qualify, a company must make a good faith certification that they need the loan based on current economic conditions. The entire principal of the loan can be forgiven based on keeping employees on payroll through the end of June and the forgiven amount will not be considered income. If you receive the $10,000 grant you would have that amount deducted from your loan forgiveness.
- Businesses with existing SBA loans can defer paying for up to 6 months without interest or penalties.
- Businesses with a 50% quarterly drop in gross receipts compared to past years can get a refundable tax credit for half the wages paid to employees, up to $10,000/employee as long as they keep paying wages and health benefits. Small businesses that take advantage of this will not be eligible for the SBA forgivable loans.
- Suspend federal student loan payments through September 30 without interest or penalties. Employers can also provide up to $5,250 in tax-free student loan repayment benefits.
- Employers and self-employed individuals can defer the 6.2% social security tax with half of the deferred amount owed by 12/31/21 and half by 12/31/22.
- Additional funding for food stamps, child nutrition, and food banks.
- $100 billion payments to hospitals for lost revenue and additional payments for treating patients with coronavirus.
- $16 billion for equipment like ventilators and masks.
- $500 billion of loans for businesses and state and local governments.
- Airlines will get bailed out in exchange for limits on stock buyback for the next year, executive compensation, and retaining employees and airports served.
- Money for the national guard, farmers, schools, distilleries making hand sanitizer, defense, post office, and research for developing coronavirus medicine and vaccines.
The House of Representatives has just passed the $2 trillion Coronavirus Stimulus Bill. It passed the senate on Wednesday and will now go in front of President Trump for his signature.
Single filers making less than $75,000 will get $1,200 plus $500 for each dependent child under 17. Married filers making less than $150,000 will get $2,400 plus $500 for each dependent child under 17. That amount is phased out at a rate of $5 per $100 of income until a single filer makes $99,000 or a married couple without children makes $198,000. The phaseout with children will be $10,000 higher per child, so a couple with 2 kids will phaseout completely at $218,000 and with 4 kids at $238,000.
Some 83% of Americans will qualify for a stimulus check.
Once you reach 17 you can get your own $1,200 check if you file your own tax return and aren’t claimed as a dependent on someone else’s return.
The stimulus payment is not taxable.
The IRS does not require enrollment and automatically sent out checks or direct deposits based on your 2019 tax return income, or your 2018 tax return if you have not yet filed for 2019 return.
It’s worth noting that the income test is actually based on the 2020 tax year, but the Wall Street Journal reports that you won’t need to pay back money if you make too much in 2020.
On the flip side, if you have more dependent children in 2020 than you did on your 2018 or 2019 return, you can still get the stimulus credit for them when you file your 2020 return. Plus if your 2020 income drops from 2019, you can get an additional credit based on your lower income when you file your 2020 return in 2021.
One of the flaws in the Stimulus Bill was that it was designed to send out checks to people who filed tax returns. Many Americans don’t have any taxable income and don’t file taxes.
Selecting the direct deposit option will mean payments starting April 9, while checks will be sent out in late April and early May.