Two recovery package questions

[durablend]

No doubt to be answered later for certain but maybe some have insight

1) How is the "checks to every person/family" going to count as? Is it just a direct no questions asked payout or is it just an advance on 2020 tax refunds?

2) For what we've seen about the extension of UE for self employed/gig people, do they need to be out of work completely or just have reduced hours/reduced income?

[lark]

1. Hi, although I don't know for certain, here's what I have read.

1 - This one I do know for sure, it is an advance on the 2020 tax returns so lots of people will end up owing. Pure BS when large co. pay back not 1 cent.

2 - This I don't know, have heard nothing definitive. However, from the way Schumer described this and from what other people were saying, I got the impression you had to be totally out of work, boo. I hope it covers reduced hours but haven't seen or heard that anywhere yet so doubt it.

[dewsgirl]

2. What if you already filed?

Edit: Next year right?

[lark]

3. Don't know, devil's always in the details, but wishing you lots of luck.

My son too has lost hours but hasn't filed yet, he's waiting to see what happens because he could get laid off at any time.

[MineralMan]

4. That was for 2019.

[dewsgirl]

5. I just edited, that dawned on me.

[MineralMan]

6. It can be confusing.

We're not yet sure about what this cash payment means. Nobody has read the bill yet. We'll see.

[Amishman]

7. you have it backwards

It is not an advance of 2020 tax returns. I don't know where you got that information.

Business assistance is in the form of loans and do get paid back. TARP turned a profit for the government and is the model for the business aid this time around. I've been very critical saying that small businesses need grants, not loans, this time around.

edit: I think I see where you might be getting confused about it being an advance on 2020 returns. If a person gets the $1200 assistance based on 2019 or 2018 income but it turns out that their 2020 income puts them over the limit, they will essentially have a tax penalty for the amount of aid for which they should not have qualified. This will be a very uncommon scenario and could only impact people with high incomes right around the cutoff.

[lark]

8. This is nowhere near modeled on TARP.

Wish it were but it is not and if you don't think this will be 100% misused, you have paid zero attention to drumpf for the past 3 years. If you think drumpf will provide us the information, that's a major laugh and will never happen. As far as tax returns, it was on here yesterday that I read that. I will look for the link.

[Amishman]

10. I'll save you the trouble, here is a link to how it actually will work

https://www.forbes.com/sites/anthonynitti/2020/03/23/house-senate-coronavirus-relief-bills-offer-drastically-different-cash-payouts-to-individuals/#10ef5c447110

Similar to the Senate bill, any payment will be phased out when AGI exceeds a certain threshold. In the House bill, once a married couple has AGI in excess of $225,000, the entire payment will be lost. For a single taxpayer, the maximum payment will be gone once AGI exceeds $112,500).

Like the Senate bill, you will eventually have to true-up the advance payment when you file your 2020 return. On that return, you will receive a credit, and that credit will be compared to the advance payment you received in 2020. If the credit is GREATER than the advance payment, you’ll get to reduce your 2020 tax liability by the excess. If the credit is LESS than the advance credit you received, however, the House bill makes clear that you will have to recognize income in an amount equal to the excess and pay tax back to the government on that 2020 tax return.

As for the general business aid, it is in the form of loans and loan guarantees. Like TARP, they will need to pay it back. I think the only direct aid is to hospitals and other medical providers.

[Turin_C3PO]

9. I heard that Democrats

got that part removed, the part where it’s an advance on 2020 tax returns. I’ll go look again, though.