Paid Leave And Health Insurance Help
The plan provides incentives to employers to offer paid sick leave to staff who contract Covid-19, are exposed to the virus and must quarantine or are caring for sick family members. But it does not make leave a requirement, as initially proposed.
It also aims to make it easier for more people to buy health insurance independently.
AZ: Republicans have been OK with providing temporary support for those directly affected by the coronavirus pandemic. They balk, however, at more money going to the government workforce – and the thought that this could be a back door to a permanent federally mandated family leave programme.
Republican support: 2/5
We Will Continue To Monitor This Bill And Keep You Updated Along The Way
We will continue to monitor this bill and be available to answer questions as they come up for you and do our best to be your continued resource for financial news during this terrible pandemic.
We hope that some of these provisions will bring some extra relief to you and your business.
As always, we are doing our best for you to make the complex simple.
When Will My Stimulus Check Arrive
The stimulus money promised under the American Rescue Plan began to hit the bank accounts of many Americans on Wednesday, March 17 the first official payment date although some financial institutions chose to make the cash available to people even before it arrived from the government.
Not everyone eligible to receive a payment will have received one on Wednesday, though. Treasury and Internal Revenue Service officials said the payments will be released in batches over the next several weeks, with some coming in the mail in the form of checks or debit cards.
The Treasury Department has been working with financial institutions to try to ensure that payments arrive more quickly this time around than they did last year.
Read Also: Congress Mortgage Stimulus Program For The Middle Class
Breaking Down The $900b Stimulus Package And $14t Omnibus Bill
The legislation offers a wide range of help, both for individuals and for struggling elements of the economy, from mass transit to movie theaters.
12/21/2020 11:48 PM EST
-
Link Copied
Congressional leaders on Monday unveiled the text of a $900 billion fiscal stimulus package and a $1.4 trillion government funding deal that will deliver critical pandemic aid to millions of Americans and pad federal agency budgets through next September.
The colossal year-end package approved by the House and then the Senate on Monday night will provide another round of direct payments, enhanced unemployment benefits and billions of dollars for struggling industries in what still amounts to a less generous package than the $3 trillion response mounted at the beginning of the pandemic. Unemployment benefits expire in mid-March, likely setting up another deadline for additional congressional action early next year.
The bipartisan, bicameral year-end package also includes a dozen annual appropriations bills that, if passed, would ward off a government funding fight at the onset of the Biden administration.
Heres a breakdown of whats inside the massive year-end compromise:
What Are The Eligibility Requirements For A Third Stimulus Check
The details are still being discussed in House committees this week while the Senate is in recess. However, these are the likely basic eligibility requirements based on Biden’s American Rescue Plan, which is serving as the template, and the House Ways and Means Committee Recovery Rebates proposal.
All estimates are based on the most recent AGI on file with the IRS and, like the last two checks, up to a maximum ceiling will gradually phase out.
Maximum available amounts for lowest earners
- $1,400 for qualifying individuals
- $2,800 for qualifying couples who file a joint tax return
- $1,400 for each dependent child under the age of 17
- $1,400 for each qualifying adult dependent
Qualifying income thresholds and phase out limits
- Single filers: under $75,000 gets full amount, phase-out begins thereafter. AGI of $100,000 and over gets no check.
- Joint filers: under $150,000 gets full amount, phase-out begins thereafter. AGI of $200,000 and over gets no check.
- Head of household: under $112,000 gets full amount, phase-out begins thereafter. AGI of $150,000 and over gets no check.
Head of household includes those who are single, widowed or divorced and claim a child as a dependent, for instance.
Read Also: What’s In Stimulus Package
What Happens To The Supplemental Payments
If you qualify for any benefits, you will also receive the full $300 supplemental payment for weeks ending after March 14 and through Sept. 6. Known as F.P.U.C., its called the federal pandemic unemployment compensation.
The stimulus package also extends an extra $100 weekly payment, called the mixed-earner supplement, through Sept. 6. This payment helps people who have a mix of income from both self-employment and wages paid by other employers, because they are often stuck with a lower state-issued benefit based on their wages.
The legislation also clarifies that the $300 federal supplement will not be counted when calculating eligibility for Medicaid and the Childrens Health Insurance Program. The mixed earner supplement, however, will be counted.
Payments Based On 2019 Or 2020 Tax Return
The amount of your third stimulus check will be based on either your 2019 or 2020 return. If your 2020 tax return isn’t filed and processed by the time the IRS is ready to send your third stimulus payment, the tax agency will use information from your 2019 tax return. If your 2020 tax return is already filed and processed when the IRS starts to process your payment, then your stimulus check will be based on information found on that return. If your 2020 return is filed and/or processed after the IRS sends you a stimulus check, but before July 15, 2021 , a second payment will be sent to you for the difference between what your payment should have been if based on your 2020 return and the payment actually sent based on your 2019 return.
If you haven’t already filed your 2020 tax return, this will create some opportunities to “game” the system and increase the amount of your third stimulus check. For instance, if you’ll get a larger check based on your 2020 tax return, than you might want to quickly file your 2020 return electronically and have your third stimulus check based on that return. If you’ll get a bigger check if it’s based on your 2019 return, then just wait until after your payment is sent to file your 2020 return. For more on this, see How Filing Your Tax Return Early Could Boost Your Third Stimulus Check.
Read Also: How To Qualify For Stimulus Check 2
How Much Is The Credit Worth
For this year only, the stimulus legislation makes the credit worth up to $4,000 for one qualifying individual or $8,000 for two or more. The credit will be calculated by taking up to 50 percent of the value of eligible expenses, up to certain limits, depending on your income.
Usually, the credit is generally worth between 20 and 35 percent of eligible expenses with a maximum value of $2,100 for two or more qualifying individuals.
The stimulus package also significantly increases the income level at which the credit begins to be reduced. In past years, that started at an adjusted gross income of $15,000, but for this year the full value of the credit will be available to households making up to $125,000.
Previously, the credit was not further reduced below 20 percent, regardless of income, Mr. Luscombe said. But for this year, the legislation will begin to reduce the credit below 20 percent for households with income of more than $400,000.
Fourth Stimulus Check Amount
The fourth stimulus check amount depends on several factors. If passed, it would probably look similar to the previous checks, although that’s not guaranteed.
For reference, the first stimulus check amounted to as much as $1,200, while the second stimulus check brought $600 to eligible Americans. The third stimulus check, which the IRS is still in the process of distributing, is worth up to $1,400 per person, although the eligibility requirements are narrower.
All three checks gave the full amounts to taxpayers who made up to $75,000 a year, according to their most recent tax returns. Couples filing jointly got the full payment if they had a joint total income of $150,000 or less.
With the first two checks, those making up to $99,000 alone or $198,000 as a couple received prorated payments. With the third check, individuals who earned more than $80,000 per year or $160,000 per year as joint filers got nothing. Our guide to the stimulus check calculator can show you what your own eligibility looks like.
You May Like: How To Change Where Your Stimulus Check Goes
Do People Need A Fourth Stimulus Check
According to CNBC, there is a case for a fourth stimulus check that goes beyond the calls from lawmakers. The Economic Security Project, a progressive organization that advocates for guaranteed income no matter what the state of the economy, says there’s a need for more stimulus checks.
We need at least one more check, said Adam Ruben.
Ruben, the campaign director at the Economic Security Project, also said that stimulus checks should be “automatic,” and not stalled as they were last summer when second stimulus check negotiations caused a long gap between the $1,200 and $600 payments.
There are signs of recovery, though. The June jobs report showed a gain of 850,000, which was better than expected, according to The New York Times. That’s the strongest one-month gain since last summer.
Likewise, the Commerce Department said that gross domestic product had grown at an annualized rate of 6.5% for April through June of 2021, surpassing the figure it had reached before the pandemic, the Washington Post reported. However, that was less than the 8% GDP growth some economists had forecast.
Regardless, certain lawmakers are pushing for relief.
This unprecedented moment demands an unprecedented response. People dont only need relief, they need stability, certainty, and predictability and the ABC Act delivers them exactly that,” said Rep. Pramila Jayapal .
However, Senate Minority Leader Mitch McConnell, R-Kentucky, didn’t appear to agree.
Americans Would See More Stimulus Money If This Bill Passes
The legislation providing more stimulus money was introduced on March 10 by Rep. Ro Khanna of California and Sen. Sheldon Whitehouse of Rhode Island. It is cosponsored by Sens. Bernie Sanders, Elizabeth Warren, Michael Bennet, and Sherrod Brown.
The proposed bill would impose a new tax on large oil companies. The tax would equal 50% of the difference between what a barrel of oil costs today, and the average price of a barrel of oil between 2015 and 2019. The money collected would then fund stimulus payments.
The stimulus money would go to individual tax filers with incomes under $75,000, and married joint filers with incomes under $150,000. Based on current pricing, the payments would total around $240 per year for single filers and $360 annually for married joint filers.
The legislation is meant to address rapidly rising gas prices — the average cost per gallon reached $4.31 the day the bill was introduced, and price increases are expected to continue, with a new ban on Russian oil imports in response to Russia’s invasion of Ukraine.
No matter the uncertainty overseas, the bill’s sponsors blame the price increases on the oil companies voluntarily raising prices to drive the record profits they have recently made. The hope, according to Rep. Khanna, is that oil companies will respond to the new tax by reducing the price of fuel.
You May Like: How To Change Address For Stimulus Check
Us Home Stimulus Act 202: What States Are Sending Checks
There is support on offer in a number of states
- SAM
There is support available for millions of homeowners in the United States, as a federal program is helping when it comes to aiding any residents who need to catch up on their late payments.
There is up to 80,000 dollars on offer for people who are still paying their mortgage payments, with many homeowners having been affected by the loss of their job or reduced hours as a result of the COVID-19 pandemic.
US president Joe Biden‘s American Rescue Plan Act ensured that there was some stimulus money put aside for states to then use to support any vulnerable homeowners who could be at risk of losing their homes. In order to receive the money, however, states had to apply to get the support.
According to the National Council of State Housing Agencies , all of the states and eligible territories applied to receive the financial aid for homeowners. Now, the US Department of Treasury is looking to work in conjunction with each state to set up their own homeowner assistance fund.
Will Social Security Claimants Get A Fourth Stimulus Check
- 10:16 ET, Nov 3 2021
THERE’S a push by the Senior Citizens League to get Congress to send out a fourth stimulus check to senior citizens.
The non-partisan advocacy group is calling on a one-time $1,400 stimulus check for Social Security claimants.
The group sent a letter to Congress stating the cost-of-living adjustment, combined with inflation, will hit hard for many older Americans who are on a fixed income.
The proposal came after it heard from many seniors who shared their hardships in the aftermath of the pandemic.
The Senior Citizens League isn’t the only group trying to appeal to Congress.
There’s a petition on Change.org which has gotten nearly 3million signatures. It was started by a Denver restaurant owner.
It’s asking Congress to provide monthly stimulus checks of $2,000 for adults and $1,000 for children for the “…duration of the crisis.”
If the petition reaches 3million signatures, it’ll become one of Change.org’s most signed.
Recommended Reading: Stimulus Where’s My Payment
Obamacare And Cobra Money
With surprisingly little fanfare, the legislation includes some of the biggest changes to the Affordable Care Act since President Barack Obama signed it in 2010.
The bill boosts subsidies for customers who buy insurance through the ACA, lowering premiums across the board and outright eliminating them on benchmark plans for people making under 150 percent of the federal poverty level.
For the first time, people making over 400 percent of the federal poverty level can qualify for federal help, as well, with their premiums capped at 8.5 percent of income. The new subsidies are for only two years Democrats are likely to try to extend them.
The federal government would also cover a larger share of Medicaid expenses if states that haven’t expanded the program through the ACA choose to do so now. Twelve states have opted out of Medicaid expansion. It’s unclear whether their governors and legislatures will take up the offer.
Outside of the ACA changes, people who have left jobs during the pandemic and want to maintain their existing employer insurance can get 100 percent of their premiums subsidized through COBRA, the law that allows workers to carry over their work plans.
Timeline For Stimulus Checks Before 14 March Deadline
If all goes swimmingly with negotiations and a version of the bill with stimulus checks passes through Congress, there are two possible timelines that Cnet have drawn up, both following the assumption that the 14 March deadline that Pelosi imposed can be met, after which some existing pandemic benefits will expire.
The first scenario requires Congress to pass the bill by Friday 26 February this could happen, but is not likely. In this case, Biden would sign the bill into law on Monday 1 March and the IRS would send the first direct deposit checks the week of 8 March, with paper checks sent 15 March and finally EIP cards the week of 22 March.
The second timeline has Congress passing a bill by Friday 12 March and in this case President Biden could pass the bill on Sunday 14 March. The week of 22 March is when the IRS would begin paying the direct deposits to bank accounts, followed by paper checks on 29 March and finally EIP cards on 5 April.
Read Also: Haven’t Got Stimulus Check
What Student Loan Changes Are Included In The Stimulus Package
There is a big one for people who already have debt.
You wouldnt have to pay income taxes on forgiven debt if you qualify for loan forgiveness or cancellation for example, if youve been in an income-driven repayment plan for the requisite number of years, if your school defrauded you or if Congress or the president wipes away $10,000 of debt for large numbers of people.
This will be the case for debt forgiven between Jan. 1, 2021, and the end of 2025.
Check : $300 In Additional Weekly Unemployment Benefits Including A New Tax Break
Under the new legislation, federal unemployment checks have been extended to Sept. 6 at a $300 weekly rate. The package also reduces the tax burden on the unemployment money for households earning less than $150,000 a year. The new law renewed the weekly $300 federal unemployment checks, which would’ve expired March 14, without a gap in funding.
The plan also removes a provision that you have to make $2,500 a year to receive the credit and makes the credits fully refundable. In addition, it expands tax credits for one year to help cover the cost of child care. Families could get back as a tax credit as much as half their spending on child care for children under age 13, up to $4,000 for a single child and $8,000 for two or more children.
The new law provides financial assistance to families with children.
Don’t Miss: Do Non Filers Get A Third Stimulus Check