The Coronavirus Aid, Relief and Economic Securities (CARES) Act is a $2 trillion economic stimulus package that was signed into law by President Trump on March 27, 2020. It’s purpose is to provide relief to Americans and small businesses experiencing financial hardship due to the COVID-19 pandemic. The bill includes a variety of benefits, from direct stimulus checks to Americans and expansion of unemployment benefits, to a suspension of federal student loans until September 30th and rules for retirement accounts. In this article, we highlight seven important things you should know about how the stimulus package will affect you and how to claim your benefits.
The federal government is sending direct cash in the form of stimulus payments to Americans in need of financial relief from the coronavirus crisis. the new $2 trillion stimulus package, which will provide $1,200 for individuals and $2,400 for married couples, with an additional $500 per child under the age of 17. These payouts will be income-based and single adults with an adjusted gross income of $75,000 or less will receive the full amount. For married couples with no children earning $150,000 or less in combined incomes will also receive the full amount. The payment decreases for single people earning at least $99,000 and married couples with no children earning at least $198,000. Your income will be based on either your 2018 or 2019 federal tax filings, depending on whichever the IRS has received recently. Therefore, if you have not filed your 2019 taxes yet, the IRS will go by your 2018 return. People who do not have Social Security Numbers are not eligible for the payments, so this excludes some people with visas and undocumented immigrants. Keep in mind that only people with valid Social Security Numbers will receive payments, with the exception of people in the military. Those who receive Social Security payments, disability payments and unemployment are still eligible. Also, this process is automatic and you will not have to apply or opt in to receive your payment.
The stimulus package extends eligibility for unemployment claims for the following situations: • Workers who have been laid off or furloughed “through no fault of their own.” • Workers experiencing reduced hours because of COVID-19. • Workers who have quit, but only under some extenuating circumstances (e.g, unsafe workplace).
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