Senate Reaches Historic Deal On $2T Coronavirus Economic Rescue Package

[Midpack]

Looking forward to more detail, but finally!

The plan marks the largest rescue package in American history. The legislation covers an array of programs, including direct payments to Americans, an aggressive expansion of unemployment insurance, billions in aid to large and small businesses and a new wave of significant funding for the healthcare industry.

The Senate is slated to vote on the package later Wednesday. House leaders have signaled an interest to approve the plan quickly, but had yet to react to the overnight developments early Wednesday. Many members are relying on highlights from the plan, and the legislative text of the bill has yet to be released to the public.

https://www.npr.org/2020/03/25/8188...eal-on-2t-coronavirus-economic-rescue-package

 

[LRDave]

Looking forward to more detail, but finally!


https://www.npr.org/2020/03/25/8188...eal-on-2t-coronavirus-economic-rescue-package

From the great beyond, Everett Dirksen quietly changed the letter "B" to "Tr"....

 

[CRLLS]

Fool me once, shame on you. Fool me twice...…. I've heard this before. I'll believe it when the Senate votes on it and the House approves it and it is then signed into law, which it may very well be. I hate to be a naysayer, but things can and do change. Having the Senate agree is encouraging though.

edit: My comments were not intended to be against you, Midpack.

 

[Sunset]

I'm looking forward to finding out the details once it's nailed down and signed.
So many things have been said, and the devil is in the details, it's too uncertain for me right now.
Besides I don't get a vote.

 

[Midpack]

Fool me once, shame on you. Fool me twice...…. I've heard this before. I'll believe it when the Senate votes on it and the House approves it and it is then signed into law, which it may very well be. I hate to be a naysayer, but things can and do change. Having the Senate agree is encouraging though.

edit: My comments were not intended to be against you, Midpack.

I understand. I’m being (uncharacteristically) optimistic...

 

[W2R]

I understand. I’m being (uncharacteristically) optimistic...

Well, there's something to be said for optimism. It's doggone hard to be optimistic about anything related to this pandemic.

I'm 100% pessimistic about the pandemic (and all these bills) but I am just in wait-and-see mode. I'm playing my video game for pure escapism and hoping for the best. We need optimists here on the forum to balance all us pessimists.

I sure hope that somehow, some temporary help can be provided to those individuals and businesses that need it.

 

[mkedst]

I don't think early retirees will receive a check, because it requires minimum $2500 earned income to qualify (i.e. wages, self employed) ... at least according to the GOP proposal.

https://www.finance.senate.gov/imo/media/doc/Section-by-Section Coronavirus Tax Relief Measures.pdf

 

[CRLLS]

I understand. I’m being (uncharacteristically) optimistic...

Maybe, just maybe, if we concentrate all of our optimism together, we can get this done. Something similar worked in Ghostbusters II, didn't it?

 

[statsman]

I'm hearing the House adjourned for the day without voting on the stimulus package. Has anyone heard otherwise?

EDIT: The bill needs to be passed by the entire Senate first before going to the House. Sounds like even if the Senates passes it early enough in the day, the House won't take up the bill until tomorrow.

 

[jollystomper]

I don't think early retirees will receive a check, because it requires minimum $2500 earned income to qualify (i.e. wages, self employed) ... at least according to the GOP proposal.

https://www.finance.senate.gov/imo/media/doc/Section-by-Section Coronavirus Tax Relief Measures.pdf

Interesting, it is based on 2018 tax returns. For those who retired in 2018 (such as myself), that may impact what (if any) you are eligible for.

 

[statsman]

Interesting, it is based on 2018 tax returns. For those who retired in 2018 (such as myself), that may impact what (if any) you are eligible for.

Saw that too. Our income from the 2018 tax year is too high to qualify because of the taxable capital gains on a house sale. As it is, one of us is drawing SS and the other a pension. I really don't think we're supposed to be the individuals who require the immediate help.

 

[Sunset]

I don't think early retirees will receive a check, because it requires minimum $2500 earned income to qualify (i.e. wages, self employed) ... at least according to the GOP proposal.

https://www.finance.senate.gov/imo/media/doc/Section-by-Section Coronavirus Tax Relief Measures.pdf

Well, that will suck for a few old folks I know that are living on SS only, and these days it's a little more expensive to order food online vs going to grocery store to pick the cheapest cat food.

 

[scrabbler1]

I don't think early retirees will receive a check, because it requires minimum $2500 earned income to qualify (i.e. wages, self employed) ... at least according to the GOP proposal.

https://www.finance.senate.gov/imo/media/doc/Section-by-Section Coronavirus Tax Relief Measures.pdf

If this is part of the final bill, then I agree that many of us here, including me, will get nothing, even if we meet any income $$ requirements. Interesting how SS and certain veterans benefits do count toward the $2,500 minimum income.

 

[jollystomper]

Saw that too. Our income from the 2018 tax year is too high to qualify because of the taxable capital gains on a house sale. As it is, one of us is drawing SS and the other a pension. I really don't think we're supposed to be the individuals who require the immediate help.

I agree. DW and I had been discussing adding anything we would potentially have gotten to our charity/gift giving. If this helps move the markets towards recovery that will be better for us than getting money.

 

[Aerides]

Well, that will suck for a few old folks I know that are living on SS only, and these days it's a little more expensive to order food online vs going to grocery store to pick the cheapest cat food.

qualified income includes SS income according to the text of the bill.

 

[sengsational]

Interesting how SS and certain veterans benefits do count toward the $2,500 minimum income.

SEE! I knew taking SS before 70 would pay-off!

 

[mkedst]

Well, that will suck for a few old folks I know that are living on SS only, and these days it's a little more expensive to order food online vs going to grocery store to pick the cheapest cat food.

SS recipients qualify, I'm referring to early retirees, assuming ages below SS qualification.

 

[fandk]

There appears to be a provision in the relief package that allows RMD's to be deferred. However, some sites are saying it applies to people starting under the new law at age 72 this year. Other sites seem to provide other conflicting information. I'd like to know if current RMD's will become optional, and thus can be discontinued for this year, under the provisions of the new bill. If you have a good source of information, please post. Thanks.

 

[Fermion]

The real question is what happens to people who had high income in 2018 but much lower income in 2019 (and 2020 is looking pretty bear).

They get the shaft or will things get trued up at tax time in 2021?

 

[cathy63]

I don't think early retirees will receive a check, because it requires minimum $2500 earned income to qualify (i.e. wages, self employed) ... at least according to the GOP proposal.

https://www.finance.senate.gov/imo/media/doc/Section-by-Section Coronavirus Tax Relief Measures.pdf

According to news reports, the requirements at the lower end have been removed in the final bill, which is not yet available online.

Also, the original bill (here) had the stimulus payment coming as an advance payment of a one-time credit that will be included on your 2020 tax return. It looks like they were just using 2018 tax returns to figure out who would probably be eligible for the 2020 credit so they could distribute the money early. I'm guessing that hasn't changed in the final bill, so if you're entitled to the credit in 2020, then even if you don't receive it in advance because you were in a different situation in 2018, you should still be able to claim it when you file next year.

I wonder what will happen for taxpayers who died in 2019 and for whom final returns haven't yet been filed...

 

[mkedst]

Saw that too. Our income from the 2018 tax year is too high to qualify because of the taxable capital gains on a house sale. As it is, one of us is drawing SS and the other a pension. I really don't think we're supposed to be the individuals who require the immediate help.

CNN reported today:
"Qualifying income levels will be based on 2019 federal tax returns, if already filed, and otherwise on 2018 returns."
https://www.cnn.com/2020/03/25/politics/senate-deal-stimulus-checks-coronavirus/index.html

So, could possibly be based on 2019 returns.

 

[Mr._Graybeard]

Watch Boeing stock soar. The WaPost reports that the Senate put a little present into the bailout package for them.

 

[Another Reader]

The original report I saw, which was posted on Twitter by an economist that saw the bill, said that RMD's have been cancelled. I will be happy not to take any more distributions this year if that is the case.

 

[mkedst]

The real question is what happens to people who had high income in 2018 but much lower income in 2019 (and 2020 is looking pretty bear).

They get the shaft or will things get trued up at tax time in 2021?

I could be that 2019 is used, if filed already.

"Qualifying income levels will be based on 2019 federal tax returns, if already filed, and otherwise on 2018 returns."
https://www.cnn.com/2020/03/25/politics/senate-deal-stimulus-checks-coronavirus/index.html

 

[GalaxyBoy]

Today, 3/25, CNBC.com has an article on how the bill would affect retirement savings.

Key points:

This year, you’ll be able to take a coronavirus-related distribution of up to $100,000 from your retirement plan or IRA without the 10% early withdrawal penalty, according to the most recent version of the bill.

The bill also relaxes the rules around retirement-plan loans, allowing you to borrow up to $100,000 from your 401(k). That’s double the amount you can normally take.

Retirees who would normally take required minimum distributions from their retirement savings can waive them for 2020.