As we continue to quarantine and practice social distancing The CARES Act, Coronavirus Relief Bill has been signed into law. The $2 Trillion Aid Package will provide relief to Individuals, Small businesses, Big Businesses, State and Local Governments, Public Health, Education and $26 Billion for a Safety Net, which includes, Child Nutrition, Food Stamps and Food Banks.
Here is a breakdown summary of the aid relief: Individuals can plan to see a one time payment of $1,200 for single filers who make $75,000 or less with a complete phaseout with an AGI of $99,001. MFJ will see $2,400 with an additional $500 per child (Under age 17) for both Single and MFJ. MFJ will completely phase out with an AGI of $198,001. They hope to get checks out within the next 3 weeks and will go by either your 2019 tax filing or 2018 return if you have yet to file for 2019. People who only have social security are also eligible and will be based on information provided by the Social Security Administration.
Extra Federal Unemployment Payments: States will pay unemployment for those who qualify under their state guidelines and with the bill individuals will receive and extra $600 a week from the federal government above what their state pays. The federal payment will continue for four months as long as the individual continues to qualify for unemployment.
Gig Workers and Freelancers: Self-employed normally cannot receive unemployment, however the bill creates a temporary Pandemic Unemployment Assistance program through the end of the year for individuals who have lost or will lose income through a direct result of the coronavirus pandemic.
Small Businesses (fewer than 500 employees) will be eligible for Emergency Grants up to $10,000 to cover immediate operating costs.
Forgivable Loans: Up to $10 million per business. Any portion of the loan used to maintain payroll, keep workers on the books may be forgiven so long as the workers are employed through June 30th.
Relief for Existing SBA Loans: Possible 6 months of payments covered for current SBA loans.
All Business: The bill creates a fully refundable tax credit for closed or distressed businesses (that meet certain employee criteria), to assist in keeping workers on their payroll. The credit covers 50% of payroll on the first $10,000 of compensation, including health benefits for each employee.
$153.5 Billion to Public Health which includes, hospitals, community health centers, CDC, Veterans' Health care, Telehealth, Drug access (for diagnostics, treatments and vaccines), and Vaccine and Supplies to the Strategic National Stockpile (to increase availability of equipment, speed the development of a vaccine, treatment and faster diagnostics).
State and Local Governments will receive $339.8 billion which will be for response efforts of COVID-19. This part of the bill also includes Community Development Block Grants, assistance to K-12 schools, higher education and programs for children and families, including immediate assistance to child care centers.
Education: Temporary student loan relief (interest payments would be deferred through September 30th for Federally owned student loans), work study funds, along with many other programs under this category, receiving funding including arts programs and universities.
Safety Net: Includes $26 billion for Child Nutrition, Food Stamps and Food Banks.
The implementation of this bill will be a huge challenge for the government to implement in order to get relief to families and businesses in a short amount of time.
The above is just a summary of what this bill is offering Individual Tax Payers, Businesses and State and Local Governments. As I am sure you have heard more than once this is an historic massive bill to try and assist families, businesses, and attempt to save the once flourishing economy that we were enjoying a mere few weeks ago.