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Program: Coronavirus Aid, Relief, and Economic Security Act ("CARES Act")

Agency: Coronavirus 2020


Resource Number: 67406597
Description
The Federal Government passed the Coronavirus Aid, Relief, and Economic Security Act ("CARE") on Friday, March 27, 2020.

With millions of Americans still waiting for their economic stimulus check, here is some helpful information about the stimulus payments:
  1. Most Americans are being sent Economic Impact Payments for $1,200 to $2,400, plus $500 per child? If you haven't received yours, you may need to complete a simple form to get paid. Find out more at unitedway.org/stimuluscheck.
  2. Nearly 4 million people are being sent their Economic Impact Payment by prepaid debit card, instead of a paper check.  The debit cards arrive in a plain envelope from "Money Network Cardholder Services". Don't throw it away.  For more info click here.
  3. Questions about getting your Economic Impact Payment or need help completing the IRS’ non-filer form, can be directed to the United Way MyFreeTaxes Helpline at 844-322-3639
Direct payments to Americans

What will people get?
  • Single people earning below $75,000 will get $1,200
  • Married couples earning below a combined $150,000 will get $2,400
  • Parents will receive $500 for each child under age 17
  • A reduced amount will be available for individuals and couples making more than $75,000 and $150,000 respectively. But there will be no payments for individuals earning more than $99,000 or couples earning more than $198,000
How do I qualify?
  • Eligibility is primarily determined by tax returns
  • NOTE: Immigrants without valid Social Security numbers and “resident alien” status will NOT receive any payment. (Resident alien status means either a Green Card or the ability to prove a “substantial presence”). This excludes people who may have filed taxes under an ITIN individual taxpayer identification number) rather than an SSN
  • Someone who did not file a tax return in 2018 (e.g. a student), must file a 2019 return to qualify
  • Individuals receiving Social Security retirement, disability (SSDI) or survivor benefits are on file with the government and payments will be based on those records
  • Social Security beneficiaries who are not typically required to file tax returns will not need to file an abbreviated tax return. The Internal Revenue Service (IRS) will use the information on the Form SSA-1099 to generate payments to beneficiaries.
  • People who have filed income tax in 2018 and then moved, and have not yet filed for 2019, will face a delay
  • For information related to tax qualifications, contact Minnesota Department of Revenue
When will the money arrive?
  • People who have previously received a tax refund through direct deposit will receive their money first (possibly within 3 weeks)
  • People who received a tax refund through the mail will have a longer wait
  • Payments may also be hampered because the impact of COVID-19 has reduced the capacity of the IRS
Who is NOT eligible? 

Taxpayers likely won't qualify for an Economic Impact Payment if any of the following apply:
  • Their adjusted gross income is greater than
    • $99,000 if their filing status was single or married filing separately
    • $136,500 for head of household
    • $198,000 if their filing status was married filing jointly
  • They can be claimed as a dependent on someone else’s return. For example, this would include a child, student or older dependent who can be claimed on a parent’s return.
  • They do not have a valid Social Security number
  • They are a nonresident alien
  • They filed Form 1040-NR or Form 1040NR-EZ, Form 1040-PR or Form 1040-SS for 2019
  • For additional information visit the IRS Economic Impact Payment Information Center
NOTE: Economic impact payments will not be considered income for Supplemental Security Income (SSI) recipients and the payments are excluded from resources for 12 months.

IRS LAUNCHES NEW TOOLS:

Non-Filers to Register for Stimulus Checks

People who don't normally file a tax return can now register online through the IRS to get their $1,200 coronavirus stimulus payments.
The new IRS tool is specifically designed for people who don’t typically have a tax return filing obligation, including those with too little income to file. The feature is available only on IRS.gov, and users should look for Non-filers: Enter Payment Info Here to take them directly to the tool.

When Will Individuals Receive Their Stimulus Check?
Allows Americans to track the status of the economic stimulus payment Congress approved as relief during the coronavirus pandemic. Economic Impact Payments

Pandemic Unemployment Compensation (PUC)
  • From March 27, 2020 through to July 31, 2020, all regular unemployment insurance (UI) and Pandemic Unemployment Assistance (see below) claimants will receive their calculated benefit plus an additional $600 per week in compensation
  • This is a flat amount to everyone currently on UI, and includes anyone receiving a partial UI payment
  • This will be paid on a weekly basis
  • PUC income will NOT impact Medicaid or CHIP eligibility
  • PUC will be paid an additional 13 weeks after state UI benefits expire
  • Although workers must be “actively engaged” in searching for work. The Act says “a State shall provide flexibility in meeting such requirements in case of individuals unable to search for work because of COVID-19, including because of illness, quarantine, or movement restriction.”
  • The tradition waiting week is waived
Pandemic Unemployment Assistance (PUA)
  • Provides emergency unemployment assistance to workers who are left out of regular state unemployment insurance (UI) or who have exhausted their state UI benefits. Workers who are eligible for state UI are excluded from this program.
Do individuals qualify?
  • Those eligible for PUA include self-employed workers, including independent contractors, freelancers, people seeking part-time work, and those who do not have a long-enough work history to qualify for state UI benefits
  • NOTE: in most states, “gig” workers should qualify for regular UI because of the broad definitions of employment in so many state UI laws and should apply for regular UI
How do individuals apply?
  • Applicants will need to provide self-certification that they are (1) partially or fully unemployed, OR (2) unable and unavailable to work because of one of the following circumstances:
    • They have been diagnosed with COVID-19 or have symptoms of it and are seeking diagnosis
    • A member of their household has been diagnosed with COVID-19
    • They are providing care for someone diagnosed with COVID-19
    • They are providing care for a child or other household member who can’t attend school or work because it is closed due to COVID-19
    • They are quarantined or have been advised by a health care provider to self-quarantine
    • They were scheduled to start employment and do not have a job or cannot reach their place of employment as a result of a COVID-19 outbreak
    • They have become the breadwinner for a household because the head of household has died as a direct result of COVID-19
    • They had to quit their job as a direct result of COVID-19
    • Their place of employment is closed as a direct result of COVID-19
    • Visit website for application information
 Not eligible:
  • Workers are not eligible for PUA if they can either telework with pay or are receiving paid sick days or paid leave
  • Undocumented workers will not qualify
Small Business Loans via the Small Business Administration (SBA)

NOTE: Non-profits are eligible
  • ‘Paycheck Protection Loans’ can cover payroll costs, interest costs, rent, and utilities
    The SBA will provide 100% federally-backed loans to eligible small businesses and 501(c)(3) non-profits with less than 500 employees. These will be issued through banks and other lenders. These loans will NOT require SBA pre-approval
  • The loans will equal 2.5 times the monthly payroll costs
    The loans can be used for payroll, interest on mortgages, rent, and utilities.  The interest rate through the lenders will not exceed 4%
  • The SBA will administer the program through the states
MOST IMPORTANT PIECE: Loans will be forgiven if the non-profit keeps staff on the payroll between March 1 and June 30. In effect, this makes the loan a general operating grant. Forgivable loans of this type can be taken out for as much as $10 million

Application process:
  • Online application form
  • Complete the form
  • “Take” form to the bank (assume there might be a way of filing this electronically)
  • Bank asks SBA for approval of loan
  • Bank puts money in the individual's account
  • Individuals use the money for 100% of payroll
  • Loan is forgiven when the individual accounts for its use




Program Information
 
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Last Verified On: 4/27/2020
 





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