In a 96-0 vote, the Senate approved the Coronavirus Aid, Relief, and Economic Security Act. The bill includes about $2 trillion in funding designed to reduce the economic damage resulting from the ongoing pandemic.
Below are the bill’s highlights.
For consumers …
- Legislation will provide individuals with one-time $1,200 tax-rebate checks — and an additional $500 payment for each qualifying child — for individuals who meet certain eligibility requirements.
- There will be an expansion of what is considered a “covered individual” in order to claim unemployment benefits, which includes gig and freelance workers.
- And there will be an increase of $600 per week in unemployment benefits for four months.
For small businesses …
- The package authorizes about $350 billion in loans for small businesses.
- There are stipulations that eligible, small-business loans used to pay for things like covering payroll, rent or mortgage, and utilities will be forgiven.
For corporations …
- There will be $500 billion in funds to aid corporations, most of which will be going toward paying back Federal Reserve loans.
- Approximately $17 billion will go toward assistance for companies deemed necessary for national security.
- Around $25 billion is earmarked for passenger air carriers.
For the healthcare industry …
- The bill slots about $100 billion in funds to healthcare providers.
- Around $16 billion is reserved to making medical equipment and supplies that have since become difficult to obtain since the coronavirus outbreak.
- The bill also delays some scheduled Medicaid cuts for hospitals and increases Medicare reimbursements for doctors and hospitals.
The bill is expected to move to the House, with a vote expected on Friday. President Trump is expected to sign the measure if it’s passed.
What does this mean for you?
If you filed a tax return in 2018 or 2019, you may be eligible for a tax-rebate check. But to get the full, one-time payment of $1,200, you have to have an adjusted gross income of $75,000 or less as an individual — or $150,000 or less if you filed your taxes as a married couple. You’re also eligible for an extra $500 per dependent.
And for every $100 of income earned over $75,000, you’ll receive $5 less. If you filed as an individual with an adjusted gross income greater than $99,000, as a head of household with one child with adjusted gross income greater than $146,500, or as a couple with no children and adjusted gross income exceeding $198,000, you won’t receive anything.
Here’s a breakdown of how this might look for someone filing as an individual.
| Adjusted gross income | Tax rebate amount |
|---|---|
|
$75,000 |
$1,200 |
|
$80,000 |
$950 |
|
$85,000 |
$700 |
|
$90,000 |
$450 |
|
$95,000 |
$200 |
The Washington Post has a calculator that may help you determine how much you can expect to receive in your stimulus check.
What’s next?
First, the bill must pass the House and be signed by the president. If it doesn’t make it, lawmakers will likely go back to the negotiating table to formulate another package.
If the bill does pass, it could mean that you’ll receive a check — if you meet the requirements. Although it’s unclear when Americans may receive one-time payments, eligible citizens will probably receive them via direct deposit or a physical check in the mail, depending on how they opted to receive a tax refund in the past.
You may want to consider using any money you receive to build an emergency fund so you’re prepared for any unexpected bills over the next few months.