Amounts, criteria and schedule: what is known about the second round of quarantine financial aid
It is unclear whether a new coronavirus benefit package will be approved before the elections (November 3), but negotiations are underway. While everyone is waiting, edition CNET highlighted the key facts known about the second package.
1. It is hoped that the bill will be passed before the elections
The White House and Democratic negotiators have until Friday, October 30, to close a bailout deal so that they can pass a final law before the November 3 elections. Both sides expressed optimism about this agreement.
“I think we're almost there,” said House Speaker Nancy Pelosi.
However, this does not mean that the path ahead is clear. Senate Republicans may reject a bill negotiated by Democrats and the White House.
If the package is accepted before the elections, then payments to the Americans could begin to arrive by the end of 2020. Otherwise, the discussion may not resume until January (depending on the election results).
2. The IRS could owe you
If you are still waiting for your first payout, there are several ways to track it. It is estimated that about 9 million people were eligible for the first round of payments but did not receive it because they needed to register on the IRS website - an extra step that most people did not have to take. The deadline for this is November 21st.
Some people who have dependents received only partial payments and still owe money. The deadline for their receipt in 2020 expired on September 30, but the surcharge can be received with a tax refund next year.
3. When calculating payments, use the formula
You may be interested to know that the IRS has a formula for calculating how much money you should receive under the coronavirus financial assistance program.
Now there is a possibility calculate how much you can get using this calculator.
4. People in prison have a chance to get money
A California court ruled that jail time should not deny anyone the right to receive a check from the government and ordered the IRS to pay money to prisoners who qualify for the financial assistance program. The court found that CARES did not prevent this group of people from receiving checks and that the IRS's interpretation was incorrect. If this decision remains in force (not appealed), about 2 million more people or their families will be able to receive payments.
5. How the population used the money
A new survey of how people in the US used their first check has shed light on the economic reality of the impact of the coronavirus. Between June and August, the Federal Reserve Bank of New York conducted a survey of 1300 households. The study found that of the 89% of respondents who reported receiving government checks (average $ 2400):
- 29% spent money on basic necessities;
- 36,4% have set aside this money;
- 34,5% used them to pay off debts.
6. You can be in one of 5 different pay groups
Eligible Americans received the first payments at different times, often because of the payment method, and the second payment will be similar. For example, those who have a direct deposit account listed on their tax return may receive a direct money order from the IRS several weeks ahead of those who receive a paper check or prepaid card in the mail.
7. Perhaps your second payment will arrive earlier than the first
With the first payments, the IRS worked out the process of sending money to Americans and solved many of the problems in this regard. If the second round of payments is approved, it is likely that the agency will be able to expedite the process of sending payments. The tracking tool is already up and running, the system is in place, and it is likely that most people who receive the first check will be on the recipient list in the second round as well.
8. New changes can give more money to dependents
The second round of payouts is likely to follow pretty much the same rules and guidelines as the first. But the requirements for who can receive money may change. One of the proposed bills redefines who is considered a dependent and gives $ 500 for each one regardless of age.
On the subject: IRS extends registration deadline for quarantine assistance
The White House's current $ 1,8 trillion proposal calls for a payment of $ 1000 for each dependent child.
9. There are many weird exceptions and rules
If the second round of help is approved, there will be many small details, rules and exceptions that can confuse anyone. While some situations are understandable, others concerning you and your dependents can be questionable.
- There are exceptions among seniors and eligible retirees.
- Those who owe child support may or may not receive money.
- Each parent who shares custody of a dependent child can receive money.
- US citizens overseas and citizens of United States territories may be eligible for cash benefits.
- Additional steps will be required for those receiving Social Security disability.
- Certain circumstances may delay your check, for example, if you recently moved.
10. You don't have to pay taxes on money from the government
The IRS does not consider coronavirus financial aid taxable income. This means that the payment you receive this year will not reduce your 2021 refund or increase your tax liability when you file your 2020 tax return.
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