It is official; Congress has agreed to pass a $2 trillion economic relief package.
This stimulus package comes at the precipice of the Covid-19 virus affecting millions of American households. This package includes stimulus payments to particular taxpayers, expanded unemployment coverage, and more. The President is expected to sign it very soon. Here are the main takeaways from the relief package:
Direct Payments:
The economic relief package includes one time payments for taxpayers: The aid package allows for checks of $1,200 to taxpayers with adjusted gross income up to $75,000 for individuals and $150,000 for married couples. The package also states that individuals and couples are eligible for an additional $500 per child. However, your income can make a big difference in what money you may receive. The payments decline by $5 for each $100 of income over those thresholds and phase out for individuals whose revenues exceed $99,000.
Unemployment Benefits:
Millions, if not more, have applied for unemployment due to the virus; therefore, this package has extended aid to cover those costs. Most importantly, the bill will extend to nontraditional employees, such as contractors who may lack benefits in individual states. Current unemployment assistance would rise by $600 a week for four months (through July 31).
Takeaway:
The best way to receive this money is to file your tax returns as soon as possible. The IRS will be giving that money via direct deposit or checks, based on the tax information provided for 2019 or 2018. The best thing to do is to file early, despite the deadline pushback, and focus on 2020. Karla Dennis & Associates will be keeping you updated and answer your questions regarding these events.
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