President Trump on Friday signed into law a historic $2.2 trillion coronavirus stimulus package that extends an extraordinary lifeline to Americans in virtually every circumstance who have been affected by the coronavirus – workers, the unemployed, the self-employed and contractors.
Meanwhile, businesses large and small would receive hundreds of billions of dollars in financial assistance in the hope that they’ll avoid shutting down or having to lay off employees.
Individuals with an adjusted gross income of $75,000 or less will be eligible for up to $1,200 ($2,400 for joint tax returns) and $500 for each qualifying child. Those with little or no tax liability also will get $1,200 ($2,400 for joint returns).
The payments will start to phase out for Americans who earn more than $75,000, or $150,000 for a joint return. The amount you receive will be decreased by 5% of the amount your income exceeds $75,000. For example, a single person with an $85,000 salary would get $700 after subtracting 5% of $10,000, or $500.
The payments will phase out completely for single filers with incomes exceeding $99,000, $136,500 for head of household filers with one child, and $198,000 for joint filers with no children.
If you’ve already filed your 2019 taxes, the IRS will use those returns to determine your rebate. If not, your 2018 returns will be used to calculate your check.
Ultimately, however, the package will be “reconciled after the fact” with a person’s 2020 earnings, meaning if you earn more or less this year, you stand to either pay back some of the bonus or get a bigger rebate next year.
Treasury Secretary Steve Mnuchin previously said that “as soon as Congress passes this, we will get this out in three weeks.”
Individuals who have set up a direct deposit with the IRS can expect the sum quicker than those who have to wait for a check in the mail. But it could end up taking much longer than that.
Americans losing jobs because of the outbreak would see their weekly state insurance benefits – which average about $400 – increased by $600 for four months.
The bill sets aside $350 billion in Small Business Administration loan guarantees for small firms. Under the latest proposal, those that hold onto their staffs wouldn’t have to pay the money back. Some small businesses, however, already have been forced to lay off some or all workers.
All small firms also would be relieved of having to pay back existing loans for six months, at a cost of another $17 billion.