Stimulus Aid Updates

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law on March 27, 2020. The $2 trillion stimulus package provides economic relief for Americans and American businesses that have been negatively impacted by the COVID-19 outbreak.

Fast Facts

• Stimulus checks will begin to be distributed by the IRS starting in April 2020.
• You may receive as much as $1,200 per person ($2,400 per couple and $500 per dependent) if your income does not exceed $99,000 as an individual or $198,000 as a couple.
• If you already filed your 2018 or 2019 tax return, the IRS will deliver your stimulus check using the information from the most recent return filed.
• If you haven't filed a 2018 or 2019 tax return, do so now. Make sure to include your direct deposit information.
• Even if you don't have an income or typically don't have to pay taxes, you will need to file a stimulus-only tax return to get your payment.

Eligibility

Tax filers with adjusted gross income up to $75,000 for individuals and up to $150,000 for married couples filing joint returns will receive the full payment. For filers with income above those amounts, the payment amount is reduced by $5 for each $100 above the $75,000/$150,000 thresholds. Single filers with income exceeding $99,000 and $198,000 for joint filers with no children are not eligible.

Questions & Answers

Private insurance companies are now required to cover all coronavirus treatment. Coronavirus testing is free.

Freelancers, contractors, and the unemployed have specific new benefits. Weekly unemployment assistance has been increased by $600 for four months, in addition to what an individual may already be receiving. The legislation also provides 13 weeks of unemployment insurance. Through the temporary new Pandemic Unemployment Assistance program, freelancers and gig workers who may not typically receive unemployment benefits are now able to do so.

Small businesses may receive grants up to $10,000 for immediate costs. Small businesses with fewer than 500 employees who are maintaining payroll during the crisis may receive up to eight weeks of cash flow assistance. $17 billion of the stimulus package is designated to aid small businesses already using Small Business Administration loans.

Student loan payments from government agencies are not required through September 30, 2020. Interest will not accrue during this time. You have the option to continue to make payments if you wish. Any private student loans or FFEL loans are not regulated by this change. Student loans are not being cancelled, simply suspended. Employers may contribute up to $5,250 to their employees' student loans without it counting as payment to the employees in question.

401(k) loans and retirement funds now have more flexible guidelines. 401(k) loans have been increased from $50,000 to $100,000. Individuals may withdraw from their retirement funds up to $100,000 for coronavirus-related purposes without the 10% penalty; this applies retroactively to January 1, 2020. Withdrawals are still taxed, but now have an extended pay period of three years.

Economic impact payments will be available for the duration of 2020. More information is forthcoming.

Social Security payroll tax payments are postponed for the remainder of the year for employers, who can pay it back over the next two years.