Today, House passes $2.2 trillion economy stimulus bill and send it to Trump. I like to summarize what the bill may affect to you as following.
- $1,200 per adult
All U.S. residents with adjusted gross income up to $75,000 ($150,000 for married couples) would get a $1,200 ($2,400 for couples) “rebate” payment. They are also eligible for an additional $500 per child who is 16 or under. The payments would start phasing out for earners above those income thresholds and would not go to single filers earning more than $99,000; head-of-household filers with one child, more than $146,500; and more than $198,000 for joint filers with no children.
- Employment tax credit
Businesses would get a tax credit for keeping idled workers on their payrolls during the coronavirus pandemic, so long as the businesses meet certain criteria. They would get a refund for half of what they spend on wages, up to $5,000 per worker.
- Social security tax
Employers would get to defer the 6.2 percent tax they pay on wages that is used to fund Social Security. The deferred tax would have to be paid over the following two years: half by Dec. 31, 2021, and the other half by Dec. 31, 2022.
- Small Business Loan
Due to so many numbers of applications, the SBA cannot perform its work in timely. However, the bill passed today include grants, which your business may be eligible, so please wait until all related contents are clarified before applying for the SBA loan.
- Mortgage payment forbearance
Homeowners who are adversely impacted by this national emergency may request mortgage assistance by contacting their mortgage servicer. Now, foreclosure sales and evictions of borrowers are suspended for 60 days.
I will update once the Department of Treasury announce any detail related to the bill above.
Min Won, CPA
Min Won & Associates