The Covid-19 pandemic is breaking the American economy. We’re in an awful situation. However, Congress and the president’s office worked on a stimulus package. Besides, other measures are in place. For example, the IRS started a relief to taxpayers and the interest rates are lower for Federal Reserve.
Despite that, the stock markets are crashing, businesses are closing, and unemployment numbers are growing fast. Also, buyers spendings are abruptly falling, 2020 GDP estimates are decreasing quickly, and a recession is on its way. What we want to stress here is that the scenario is critical.
Within this context, the stimulus checks will in fact be the payment of a new tax credit in advance. The Coronavirus Aid, Relief, and Economic Security Act boosted it. Each taxpayer gets a payment of up to $1,200 ($2,400 for couples who have a joint return). Plus, there is $500 for each qualifying kid under 16 that the person has.
Understand how you could benefit from the stimulus package
The good news is those who are self-employed now have credits. While they don’t receive the same benefits, such as family and sick leaves, usually given to regular workers, the Families First Coronavirus Response Act gives self-employed individual 2 credits of refundable tax. This is connected to the whole period they can’t work due to the Covid pandemic.
The credit for sick leave refunds self-employed workers for a maximum of ten days out of the business. All because that would allow them to a covid-related illness leave if they were regular workers. And for any covid family leave, there is the family credit benefit which can be used up to fifty days apart from their business.
In the meantime, a couple of the economic stimuli will boost companies, but several actions will flood the economy with money. Therefore, they will directly assist ordinary citizens who are living through a financial hit.
Stimulus for students
Another great benefit is the relief from student loans. Student related debt can be a huge bother during normal years. Lawmakers see this. That’s why the CARES Act has various reliefs efforts for student loans.
For example, there is a postpone order for payments of student loan until the end of September 2020. And every loan federally-owned won’t have interest or penalties. This covers more than 95% of loans for students. The government also will suspend activities of collection against those who were late on payments already.
Besides, if the student needs to stop school for reasons that are covid-related, they won’t have to fear their loan burden. In addition, they won’t have to give grants back. In the same manner, those attending work/study schedules still will get their money even if they can’t meet their obligations due to the Covid outbreak.
The stimulus package could help you in many ways in 2020. The federal government made several moves in the economy and we all hope this will turn things around.