What Is in the $2 Trillion Stimulus Package
The senate passed a massive $2 trillion emergency economic package that includes direct cash payments to people across the country to help them through the crisis and much more. The vote was 96-0 with some senators not attending due to self isolation. It goes to the House for a vote scheduled Friday. While the package is a 880 page monster, many details have been revealed already. Here are some of the most important information that this package includes.
- The cash payments under this stimulus package are not taxable.
- The cash amount you receive varies based on these variables:
- If you made less than $75,000 in 2019, you will be eligible to receive the full payment of $1,200. Couples who filed jointly and made less than $150,000 will get the maximum of $2,400. An individual who filed as “head of household” and earned $112,500 or less gets $1,200.
- For every child in the household, you will receive an additional $500.
- If you made more than $75,000, your payment will be reduced by $5 for every $100 of income that exceeds the limits.
- The payment decreases to zero for an individual making $99,000 or more or a couple making $198,000 or more.
- Check this calculator to figure out how much you get.
- Workers who are able to work from home, and those receiving paid sick leave or paid family leave would not be covered.
- Social Security recipients who don’t usually file tax returns will automatically get payments.
- The money will be sent out “within three weeks” to people for whom the IRS has information. That applies to those who have been working and paying taxes since 2018. Otherwise the IRS can mail a check to your last known address, but this process might take up to 4 months. If you’ve moved recently, it may be a good idea to notify the IRS as soon as possible.
- Those who are unemployed, partially unemployed or cannot work for coronavirus-related reasons would be more likely to receive unemployment benefits. Self-employed people would be newly eligible for unemployment benefits.
- Benefits will be expanded to replace the average worker’s paycheck. Eligible workers would get an extra $600 per week on top of their state benefit.
- You do not have to be a citizens to receive these benefits. You qualify as long as you are living and working in the U.S. or territories with a valid Social Security number. That includes green card holders, and generally those on work visas. Visitors and those who are in the country illegally do not qualify. Even if you have an Individual Taxpayer Identification Number you do not qualify.
- $300 tax break for charitable givings
- $25 billion for food assistance, including nearly $16 billion for SNAP and nearly $9 billion for child nutrition.
- Until September 30, there will be automatic payment suspensions for any student loan held by the federal government. Check your account online in the coming weeks.
- The Treasury Department will receive a $500 billion fund for loans to struggling industries like airlines, and even cities and states.
- Health care providers would secure $100 billion in grants to help fight the coronavirus and make up for dollars they have lost by delaying elective surgeries and other procedures. They would also get a 20 percent bump in Medicare payments for treating patients with the virus.
- Airlines receive $29 billion in grants, and $29 billion in loans and loan guarantees as well as tax relief. That funding comes with strings, such as no stock buybacks, and limits on executive compensation. Half the funds would go toward “the continuation of payment of employee wages, salaries, and benefits”.
- Businesses get a tax credit for keeping workers on payrolls during the coronavirus pandemic, so long as the businesses meet certain criteria. They get a refund for half of what they spend on wages, up to $5,000 per worker.
- $30 billion in emergency education funding for colleges and universities, states and school districts.
- $150 billion for state and local governments
- $24 billion for farmers and ranchers.
- The Defense Department would field an infusion of $10.5 billion, including $1.5 billion for the National Guard
- $200 million for investments in services and devices that help health care providers connect remotely with patients.
Here is a link where you can read the full package. Let me know of any other points, details or clarifications that are worth mentioning.