The Trump Administration is moving forward with a massive stimulus package that includes provisions to send checks to every American citizen to alleviate the financial hardships brought on by the global coronavirus pandemic.
A $1 trillion stimulus package has been put together, designed to help bail out big businesses, small businesses, and American citizens. But what is that going to mean? While some details are still light, there are facts that have been confirmed.
Here’s what you need to know.
$1,200 for Each Individual, $2,400 for Each Couple
Earlier, it was said that each individual in America might be getting $1,000. But, the Trump Administration promised more. Now, it’s known that the stimulus will give $1,200 to each individual and $2,400 to each couple. But how this is going to be done, exactly, hasn’t been described.
Only those who make under $75,000 individually are going to qualify for this package ($150,000 for a couple). Those who make more are going to get a reduced amount. This will be based on the prior year’s tax return.
Getting the Stimulus Check
One of the questions that has gone unanswered is how the check will be received. While the stimulus package has always stated that it would be paid in the form of check to citizens, that means a check will need to be delivered. This could be done through IRS data, which may be behind, or it could be done through a website, which would require massive data collection.
In the past, most economic stimulus checks have occurred as a credit during tax time. This year, the issue is more complicated as taxes themselves have been delayed by three months by the IRS.
The stimulus check is expected to come within two weeks of the bill becoming a law, though it may take longer for everything to be processed.
One Time Payment vs. Monthly Payment
There has been some confusion regarding whether the stimulus will be a one time payment or a monthly payment, as some have been arguing for both options. Presently, the stimulus is a single payment in a lump sum.
That being said, there may be another payment coming later if the situation doesn’t improve. The government has left the door open for additional stimulus checks provided that the quarantines and shutdowns continue.
What People Need to Do Right Now
Nothing is official at the time of writing, but the government is trying to push the bill and the checks through as quickly as possible. Since it hasn’t been decided yet how the checks will be distributed, most people can do nothing but wait.
Because the stimulus checks may take some time, households shouldn’t rely upon it coming through. While it does look like the stimulus will definitely happen, there’s a lot still yet to work out.
In addition to money going directly to people, money is also being delivered to businesses. The Small Business Administration is working to secure loans for small businesses hit by the disaster, and a significant bail out for industries such as airplanes has also been passed.