Lawmakers have finally struck a $2 trillion stimulus deal early Wednesday morning that will put checks in the pockets of the American people amid the Coronavirus pandemic.
Before you start making it rain in your quarantine headquarters, here are 9 things you need to know:
- Single American will receive $1,200.
- Married couples will receive $2,400.
- Parents will receive $500 per child (under the age of 17).
- Payments will phase out for individuals with an adjusted gross income of more than $75,000. Your payment will decrease $5 for every additional $100 in income.
- Individuals with an adjusted gross income of more than $99,000 will not qualify at all.
- Payments will phase out for couples with an adjusted gross income of more than $150,000.
- Couples with an adjusted gross income of more than $198,000 will not qualify at all.
- Qualifying income levels will be based on 2019 federal tax returns. If you have not filed yet, it will be based on your 2018 federal tax returns.
- Payments could begin as early as April 6 through May.
- The stimulus check is NOT taxable income.
- If your IRS refunds are usually seized to pay debt, you will still get a check. Your stimulus check will not be seized.
- The stimulus checks will be sent by mail. If you received your tax refund via direct deposit, you will receive your stimulus check via direct deposit. Make sure your banking info is correct.
- If your address changed since filing your tax return, you need to submit an 8822 Change of Address federal form immediately. Get the form here. Allow 4-6 weeks for processing.
- Americans with no income are eligible to receive a stimulus check.
- You do not have to request a stimulus check. It will be distributed automatically.
- Retired seniors are eligible to receive a check.
17. Social Security & Disability
The deal says that taxpayers relying on Social Security as part of retirement or through the Social Security Disability Insurance program can have their Social Security Administration data used directly; beneficiaries of Supplemental Security Income, which often benefits old or disabled people in poverty, are not included in the current version. (Vox.com)
Unemployment benefits will be expanded an additional 13 weeks with extra $600 a week on top of their state benefits for four months.
The stimulus package also calls for a new pandemic unemployment assistance program, which would provide jobless benefits to those who are unemployed, partially unemployed or unable to work because of the virus and don’t qualify for traditional benefits.
Independent contractors and gig workers (Uber, Lyft, Amazon drivers) will be eligible to receive federal aid. (CNN)
19. Student Loans
The stimulus packaged failed to deliver on student loan debt forgiveness, however, those with federal student loans will not have to make payments until October 2020.
During that time, any interest that accrues will be waived.
The federal government will also cease collection efforts such as garnishing wages or withholding portions of borrowers’ tax returns and Social Security payments for money owed on student loans.
If your student loan is being garnished from your wages, check with your employer to make sure they got the memo so that they can run all of your coins on your next paycheck. (USA Today)
If you have additional questions or a complex situation that was not addressed in this post, I urge you to contact the Department of Treasury at (202) 622-2000 or visit www.Treasury.gov
Hopefully, this stimulus payment will help families in need, but I sincerely hope we will not be in this pandemic until May.