Senate, White House agree $2 trillion coronavirus stimulus ($1200 checks & 4 months of expanded unemployment benefits) Update3: Signed into law!

Killthee · Mar 25, 2020

Snipping some of the summaries people seem to care most about.

On the checks:

Section 2201. 2020 recovery rebates for individuals

All U.S. residents with adjusted gross income up to $75,000 ($150,000 married), who are not a dependent of another taxpayer and have a work eligible social security number, are eligible for the full $1,200 ($2,400 married) rebate. In addition, they are eligible for an additional $500 per child. This is true even for those who have no income, as well as those whose income comes entirely from non-taxable means-tested benefit programs, such as SSI benefits.

For the vast majority of Americans, no action on their part will be required in order to receive a rebate check as IRS will use a taxpayer's 2019 tax return if filed, or in the alternative their 2018 return. This includes many low-income individuals who file a tax return in order to take advantage of the refundable Earned Income Tax Credit and Child Tax Credit. The rebate amount is reduced by $5 for each $100 that a taxpayer's income exceeds the phase-out threshold. The amount is completely phased-out for single filers with incomes exceeding $99,000, $146,500 for head of household filers with one child, and $198,000 for joint filers with no children.

Expansion of unemployment eligibility:

Section 2102. Pandemic Unemployment Assistance
This section creates a temporary Pandemic Unemployment Assistance program through December 31, 2020 to provide 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.

Length and payment:

Section 2104. Emergency Increase in Unemployment Compensation Benefits
This section provides an additional $600 per week payment to each recipient of unemployment insurance or Pandemic Unemployment Assistance for up to four months

Unemployment length expansion for people who exhaust their state unemployment benefits:

Section 2107. Pandemic Emergency Unemployment Compensation
This section provides an additional 13 weeks of unemployment benefits through December 31, 2020 to help those who remain unemployed after weeks of state unemployment benefits are no longer available.

Funding for states that offer unemployment for reduced work hours:

Section 2108. Temporary Financing of Short-Time Compensation Payments in States with Programs in Law
This section provides funding to support "short-time compensation" programs, where employers reduce employee hours instead of laying off workers and the employees with reduced hours receive a pro-rated unemployment benefit. This provision would pay 100 percent of the costs they incur in providing this short-time compensation through December 31, 2020.

Section 2109. Temporary Financing of Short-Time Compensation Agreements
This section provides funding to support states which begin "short-time compensation" programs. This provision would pay 50 percent of the costs that a state incurs in providing short-time compensation through December 31, 2020.

Incentives for businesses that keep employees on payroll:

Section 2301. Employee retention credit for employers subject to closure due to COVID-19

The provision provides a refundable payroll tax credit for 50 percent of wages paid by employers to employees during the COVID-19 crisis. The credit is available to employers whose (1) operations were fully or partially suspended, due to a COVID-19-related shutdown order, or (2) gross receipts declined by more than 50 percent when compared to the same quarter in the prior year.

The credit is based on qualified wages paid to the employee. For employers with greater than 100 full-time employees, qualified wages are wages paid to employees when they are not providing services due to the COVID-19-related circumstances described above. For eligible employers with 100 or fewer full-time employees, all employee wages qualify for the credit, whether the employer is open for business or subject to a shut-down order. The credit is provided for the first $10,000 of compensation, including health benefits, paid to an eligible employee. The credit is provided for wages paid or incurred from March 13, 2020 through December 31, 2020.

Full summary here: https://www.finance.senate.gov/imo/...-by-Section (Tax, Unemployment Insurance).pdf

Healthcare focus summary here: https://www.finance.senate.gov/imo/media/doc/CARES Act Section-by-Section (Finance Health).pdf

Killthee · Mar 25, 2020

Some additional tidbits via CNN:

Student loan payments suspended

The Department of Education would suspend payments on student loan borrowers without penalty through September 30, according to the bill.
CNN reported last week that the Department of Education was planning to allow student loan borrowers to suspend payments without penalty and accruing interest for at least 60 days.

Protections against foreclosures and evictions

The bill includes housing protections against foreclosures on mortgages and evictions for renters.
The bill states that anyone facing a financial hardship from coronavirus shall be given a forbearance on a federally backed mortgage loan of up to 60 days, which can be extended for four periods of 30 days each. The legislation says that servicers of federally backed mortgage loans may not begin the foreclosure process for 60 days from March 18.

The bill also does not allow fees, penalties or additional interest to be charged as a result of delayed payments. It includes similar protections for those with multifamily federal mortgage loans, allowing them to receive a 30-day forbearance and up to two 30-day extensions.
Those with federally backed mortgage loans who have tenants would also not be allowed to evict tenants solely for failure to pay rent for a 120-day period, and they may not charge fees or penalties to tenants for failing to pay rent.

What's in the $2 trillion coronavirus stimulus bill

Congressional lawmakers put the finishing touches on a $2 trillion stimulus bill to respond to the coronavirus pandemic, with cash and assistance for regular Americans, Main Street businesses and hard-hit airlines and manufacturers, among others.

www.cnn.com

The student loan part likely only applies to federal loans.

xfactor99 · Mar 25, 2020

Killthee · Apr 9, 2020

Cosmic Bus said:
What happened with the IRS portal that was supposed to allow people to input their bank info for direct deposit? We haven't gotten a refund this year or last, so now I'm worried that we won't get the stimulus until June or July.

For anyone that missed the update on the last page, portal could go up next week for those that don't have direct deposit info on file with irs:

Starting next week, Americans can give IRS direct-deposit information to get stimulus check faster

As soon as next week, Americans will be able to provide the IRS with direct-deposit information so they can receive their stimulus checks of up to $1,200, Treasury Secretary Steven Mnuchin told House Democrats in a call Wednesday evening.

Soon after Congress passed the $2-trillion economic stimulus bill last month, the IRS said it was working on an online portal that would allow taxpayers, once verified, to find out the status of their checks and, if necessary, to provide their banking information for direct deposit. Initially, it wasn't expected to be done until the end of April.

The payouts of up to $1,200 can be deposited directly within days once the IRS receives the needed bank information, Mnuchin has said.

Mnuchin spoke to House Democratic Caucus members in a closed conference call Wednesday. Democrats on the House Ways and Means Committee also referenced the week of April 13 in regard to launching the portal in a memo obtained by The Times that was based on staff conversations with the IRS and Treasury Department.

The Treasury Department would not confirm the April 13 timeline Thursday

Payments expected next week for those the irs already has direct deposit info on file:

For those who already have direct deposit information on file with the IRS from their 2018 or 2019 return, the payments are expected to begin next week.

Info on the simple file form for those that aren't required to do taxes:

There are two other options for providing the IRS with direct deposit information. File a 2019 tax return, or for those who don't normally earn enough to file taxes, the IRS is creating a short tax form that asks just a handful of questions including name, Social Security number, and dependents and deposit information.

Miata Life · Apr 10, 2020

It looks like the non filers page is up on the IRS website

Non-Filers: Enter Payment Info Here Tool Is Closed | Internal Revenue Service

Steps to get the Economic Impact (stimulus) Payments if you haven't filed a tax return, and aren't receiving Social Security, SS Disability Income or Railroad Retirement benefits.

www.irs.gov

RedVanguard · Apr 10, 2020

"Get Your Payment" link opens on the 17th

The IRS said it plans to launch another online tool April 17 that will allow people to provide their bank account information to the agency, if they didn't on their tax returns, so they can get their payments directly deposited.

The tool will also allow people to check the status of their payments, including the date a payment is scheduled to be automatically deposited or mailed.

Doesn't specifically mention those of us who did split refunds for our tax returns but apparently this applies to us. What a mess...

Senate, White House agree $2 trillion coronavirus stimulus ($1200 checks & 4 months of expanded unemployment benefits) Update3: Signed into law!

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