Economic Relief is on the Way: Understanding the CARES Act
The wait is finally over. After months of uncertainty, the government has passed a historic $2 trillion bill to provide economic relief to millions of Americans affected by the COVID-19 pandemic. The CARES Act is a comprehensive response to the crisis, allocating funds to support small businesses, hospitals, and individuals.
Stimulus Checks: What You Need to Know
One of the most anticipated aspects of the CARES Act is the stimulus check, a direct payment to eligible individuals. The amount you’ll receive depends on your income and filing status. If you’ve already filed your 2019 tax return, the IRS will use those numbers to calculate your payment. If not, don’t worry – they can use your 2018 return instead. And, as a reminder, the tax filing and payment deadline has been extended to July 15th, so you still have time to file.
How Much Will You Receive?
The size of your stimulus check will vary based on your income. Generally, you’ll receive the full $1,200 if you have a social security number, earned under $75,000, and weren’t claimed as a dependent on last year’s taxes. If you earned more than $75,000 but less than $98,000, you’ll receive a smaller check based on your income. Married couples can receive the full $2,400 if they make under $150,000 combined, while those filing as head of household can receive the $1,200 payment if they make under $112,500.
Additional Benefits
If you have qualifying children under 17, you can expect an additional $500. And, if you’re unemployed or partly unemployed due to the pandemic, you may be eligible for an extra $600 weekly on top of your state’s compensation.
Debunking Misconceptions
Let’s clear up some common misconceptions about the stimulus check. No, it’s not taxable. Yes, citizens abroad with social security numbers are eligible. Unfortunately, dependents are not eligible. If you’re facing layoffs, file an unemployment benefits claim within your state to take advantage of the stimulus bill’s protocols for the unemployed.
A Beacon of Hope
These are unprecedented and challenging times, with over 6.5 million Americans filing for unemployment benefits last week alone. The CARES Act is designed to provide relief and support during this difficult period. With the stimulus check and additional unemployment benefits, Americans can stay afloat until the economy recovers.
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