When Will Forthcoming Stimulus Relief Reach Ohioans?
Editor’s note: This article has been updated as the Coronavirus Aid, Relief, and Economic Security Act has now become law.
On Friday, March 27, President Donald Trump signed into law the $2 trillion Coronavirus Aid, Relief, and Economic Security Act — also known as the CARES Act — to provide economic relief for workers, families and small businesses that will eventually reach Ohioans affected by the coronavirus pandemic.
With $250 billion in individual “recovery rebates,” $350 billion in small business loans, $250 billion in unemployment insurance benefits and additional aid for hospitals, health care centers and major industries, the stimulus package is being called the largest in American history.
$150 billion will also go to states and local governments.
But as for workers and families, receiving checks in the mail “in two weeks,” as originally claimed by U.S. Secretary of the Treasury Steven Mnuchin, that is not likely.
Checks could take at least a few weeks or at most a few months to be sent out via mail or deposited to the bank accounts the Internal Revenue Service has on file for federal tax returns. Timing has been compared to the 2008 economic stimulus package, when the IRS began sending out direct deposits and paper checks in early May after a bill was enacted in early February.
Individuals making up to $75,000 a year will receive direct payments of $1,200 each, while married couples making up to $150,000 will receive direct payments of up to $2,400 with an additional $500 per child.
Individuals making more than $75,000 a year but less than $99,000 will receive a partial payment scaled-down from $1,200, and the same goes for married couples making more than $150,000 but less than $198,000 who will receive a partial payment scaled-down from $2,400 for couples without children.
Incomes will be based on 2019 federal tax returns, or if not filed, 2018 tax returns.
According to CNN, those who make more in 2019 than 2018 would not have to pay back money received from the stimulus if they end up exceeding income limits. Those who owe back taxes would still be able to get a check.
Unemployment insurance benefits would amount to $600 per week for unemployed workers, including the self-employed, amounting to four months of unemployment benefits.
The stimulus package will also make it so the Small Business Administration can act as a guarantor for loans up to $10 billion for debts and payroll.
Officials, including U.S. Senate Minority Leader Chuck Schumer and House Speaker Nancy Pelosi, have said Congress may have to come back for an additional economic stimulus. Some measures not included in the current package, including for additional food assistance, more prohibitions on evictions and foreclosures, and relief for student borrowers, have been suggested.
For more information, visit www.irs.gov/coronavirus.