Congress reached an agreement for an unprecedented $2 trillion dollar stimulus package to jolt the U.S. economy amid the Coronavirus pandemic. Politicians aimed to focus most of the funding on the four biggest priorities in the country. Trump’s companies are excluded from the bailout (so they claim.) Full details have not yet been released but here’s what we know so far:
$2 Trillion Dollar Stimulus Package Details
- $500B for distressed companies
- $350B for small business loans
- $250B for direct payments to individuals & families
- $250B for unemployment insurance benefits
U.S. To Release $2 Trillion Dollar Stimulus Checks To Individuals & Distressed Businesses
Direct Payments To Individuals
Politicians aimed to put money in the pockets of main street America. The legislation calls this payment a rebate. The plan should give $1,200 to individuals earning up to $75K (lower amounts for individuals earning more than $75K and cap at $99K for singles and $198K for couples without children.) The plan would give $2,400 to married couples earning up to $150K. Additionally, it would provide $500 per child in a family. Americans with no income, even those whose income comes entirely from non-taxable means such as SSI can receive rebate benefits. See exactly how much your stimulus check will be! See who’s excluded from this money too.
How & When Will Stimulus Payments Be Received?
Many Americans are hoping the stimulus package money is free money. Knowing our government, this stimulus money will be a tax-free prepayment on our income when filing 2020 taxes. Update: the legislation states this is a “2020 recovery rebate for individuals.”
In the 2008 housing crisis, it took more than 2 months to receive the first stimulus checks. It wasn’t until the middle of summer when the Internal Revenue Service processed enough authorized payments. Hopefully, this is not the case amid this COVID-19 crisis. Early reports suggested Americans will receive payments in April or May.
The IRS has released a Get My Payment tool to check the status of your payments.
Emergency Increase In Unemployment Compensation Benefits
The stimulus package would provide an additional $600 per week payment to each recipient of unemployment insurance for up to four months. It also provides funding to states as soon as a recipient becomes unemployed instead of waiting one week before they are eligible to receive benefits.
Gig Workers Also Considered
Surprisingly, our politicians were mindful of gig workers such as rideshare drivers, delivery drivers, etc. These workers are considered self-employed contractors (with the exception of California workers under AB5) who are left in limbo as they technically cannot claim unemployment insurance and have seen their available work dry like a dead lake due to stay at home orders.
The new legislation would create a temporary “Pandemic Unemployment Assistance” program for independent contractors. It would provide a payment to those not traditionally eligible for unemployment benefits self-employed, independent contractors, those with limited work history, and others who are unable to work as a direct result of the Coronavirus public health emergency. It would provide an additional $600 per week payment for up to four months through December 21, 2020.
We are awaiting full details to see how these small business owners would receive part of the stimulus package.
Updated April 15, 2020, at 7:30 am CT
Photo credit: Jeff Fusco/Getty Images, JGI/Jamie Grill/Getty Images
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