Written by Rocky Mengle, Tax EditorKiplinger March 20, 2020
#twill #tcot #sbalich #coronavirus #maga #leadright #stimulus #constitution
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The coronavirus (COVID-19) outbreak is crushing the U.S. economy. The stock market is tanking (we’re now in a bear market), businesses are closed, unemployment claims are spiking, consumer spending is down sharply, 2020 GDP estimates are dropping fast, and recession fears are rampant. We’re in a bad place.
But the federal government is making moves that we all hope will turn things around. Congress and the Trump administration are working together on stimulus legislation, the Federal Reserve has lowered interest rates, and the IRS is providing relief to taxpayers. Other government agencies and institutions are pushing forward with additional measures to stop the bleeding and get the economy back on track. It will take time, and we have a bumpy road ahead, but action is being taken.
While some of the economic stimulus will prop up businesses, many initiatives will flood the economy with cash and directly benefit ordinary Americans who are facing a financial hit. Some action has already been taken, but there are other ideas being discussed at the highest levels of government that could be rolled out later. Here are 10 coronavirus stimulus measures that could help you financially in 2020. Some have already been enacted, while others are still just proposals, but all of them could have a positive impact on your financial health.
Stimulus Checks
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While it is too early to tell exactly how this will be done, it’s looking more and more like Americans will be getting stimulus checks in the mail at some point soon. The idea is to pump massive amounts of cash into the economy as quickly as possible. But there are many details that will have to be worked out. For example, how much will everyone get? When will the checks arrive? Will you get less if your income is higher? Will there be more than one round of checks? Will the money be treated as taxable income? All these questions, and more, need to be answered by our lawmakers in the days and weeks ahead. But, again, the odds of you getting at least one coronavirus stimulus check seem high.
The Trump administration is floating a plan that would include two rounds of $1,000 stimulus checks to adults, plus an additional $500 for each child. The assumption is that people with higher incomes would not get a check, or get a smaller one. The government would start mailing the first round of checks on April 6 (or use direct deposit where possible). The second round would go out beginning May 18 if the presidentially declared national emergency is still in effect. So, for a married couple with two children, the family could receive a total of $6,000 under the plan.
Senate Republicans have issued their own plan. They want to issue checks for a tax credit worth up to $1,200 for each single taxpayer or $2,400 for married couples who file a joint return, plus $500 for each child. These checks would be phased out for single filers with an adjusted gross income between $75,000 and $99,000, and for joint filers with an AGI between $150,000 and $198,000. (The IRS will base these amounts on your 2018 tax return.) The check amount generally would not exceed your net income tax liability, except that taxpayers with little or no income tax liability, but at least $2,500 of qualifying income (earned income, Social Security retirement benefits, and certain compensation and pension benefits paid to veterans), would get a minimum rebate check of $600 ($1,200 for joint filers).
There’s also a proposal from 18 Democratic Senators. They want to send payments to American families on a quarterly basis. Practically everyone would receive an initial check for $2,000, with a second $1,500 payment and subsequent $1,000 payments until unemployment drops to less than 0.5% above what is was before the coronavirus crisis.
Negotiations are underway, so the amount and timing of payments to Americans is still very much up in the air. Stay tuned!
