7 ways to keep your finances strong amid the COVID-19 pandemic
It is essential to adjust your budget and minimize credit card debt.
The Republican Party on Monday revealed the details of a second round of direct payments to American households, in legislation called the HEALS Act.
If you qualified for a check in the first round, you likely have a second payment, perhaps for an even larger amount.
Controls will largely follow the same guidelines as those issued under the CARES Act. Payments are $ 1,200 per adult for those with adjusted gross income of up to $ 75,000. The threshold for married couples is $ 150,000: they are eligible for $ 2,400 and $ 500 per dependent.
The benefit is gradually reduced for those who earn more than $ 99,000, or $ 146,500 for heads of households with one child and $ 198,000 for joint taxpayers without children.
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The difference with this round of payments is that there will be no age limit for eligible dependents. While the CARES Act only allowed an additional $ 500 to be allocated for families with dependent children, households will now be able to claim the additional $ 500 for dependents of any age.
To receive the benefit, a person must have a Social Security number eligible to work and cannot be a dependent of another taxpayer.
President Donald Trump’s name appears on coronavirus financial aid checks that were sent out to citizens across the country on April 29, 2020 in Washington, DC (Photo by Chip Somodevilla / Getty Images)
While the IRS faced some challenges in issuing the first round of checks, by keeping the criteria largely the same, the tax agency could probably exit a second round more quickly.
Lawmakers also clarified a number of issues.
For example, the legislation stipulates that reimbursements are not subject to administrative compensation for past debts, with the exception of past-due alimony. The cash is protected against bank liens or encumbrances by private creditors or debt collectors, which would be applied retroactively to the CARES money.
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In addition, it clarifies that anyone who died before January 2020 is not eligible to receive a payment, nor who is incarcerated at the time the Treasury processes the payment or anyone who is incarcerated for the duration of 2020.
Here is a look at the other proposals included in the general legislation.
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