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

[Gumby]

Can someone please post a link to the full text of the bill that comes out of the House. I am interested to see if there is anything that helps 1099 workers. I haven't seen anything yet. My state's unemployement site says 1099 workers are not covered by UE benefits but there has to be something for us, right? Right!?

https://www.documentcloud.org/documents/6819239-FINAL-FINAL-CARES-ACT.html

Start reading at Section 2102 on page 84.

 

[nvestysly]

Can someone please post a link to the full text of the bill that comes out of the House. I am interested to see if there is anything that helps 1099 workers. I haven't seen anything yet. My state's unemployement site says 1099 workers are not covered by UE benefits but there has to be something for us, right? Right!?

I was not able to locate the full text but found a synopsis from NPR. Scroll down and you'll see mention of special arrangements for those working in the gig economy. Don't know how this will work but seems like you may get some relief.

Gig workers and freelancers: Typically, self-employed people, freelancers and contractors can't apply for unemployment. This bill creates a new, temporary Pandemic Unemployment Assistance program through the end of this year to help people who lose work as a direct result of the public health emergency.

https://www.npr.org/2020/03/26/8214...e-senate-s-2-trillion-coronavirus-aid-package

 

[RetireBy90]

Just heard on local news that the House passed the bill on a voice vote.

 

[Independent]

Can someone please post a link to the full text of the bill that comes out of the House. I am interested to see if there is anything that helps 1099 workers. I haven't seen anything yet. My state's unemployement site says 1099 workers are not covered by UE benefits but there has to be something for us, right? Right!?

"1099 worker" doesn't make sense to me. But, the $1,200 goes to

TAXPAYER DESCRIBED.—A taxpayer is described in this paragraph if the taxpayer—

“(A) has qualifying income of at least $2,500, or

“(B) has—

“(i) net income tax liability which is greater than zero, and

“(ii) gross income which is greater than the basic standard deduction.

"qualifying income" is earned income, SS benefits, or pensions. I don't think your 1099 income counts for that.

But, you probably qualify under (B)

See “SEC. 6428. 2020 RECOVERY REBATES FOR INDIVIDUALS." here
https://www.congress.gov/bill/116th...8/text#toc-idC62A2A4676F44E44B6A0D677C490FD17

I believe the House passed the Senate bill without amendments.

 

[aaronc879]

"1099 worker" doesn't make sense to me. But, the $1,200 goes to

"qualifying income" is earned income, SS benefits, or pensions. I don't think your 1099 income counts for that.

But, you probably qualify under (B)

See “SEC. 6428. 2020 RECOVERY REBATES FOR INDIVIDUALS." here
https://www.congress.gov/bill/116th...8/text#toc-idC62A2A4676F44E44B6A0D677C490FD17

I believe the House passed the Senate bill without amendments.

1099 workers would be self employed independent contractors. That is earned income so should be eligible.

 

[statsman]

"qualifying income" is earned income, SS benefits, or pensions. I don't think your 1099 income counts for that.

But any 1099 income counts towards AGI and the stimulus income threshold. Strange separation.

 

[TriumphTR3fan]

1099 workers would be self employed independent contractors. That is earned income so should be eligible.

You should find out in a few weeks if you have an account on file with the IRS as the Treasury Department sends out money. They aren't going to ask if you qualify, they're going to determine that.

 

[SecondCor521]

"1099 worker" doesn't make sense to me. But, the $1,200 goes to

"qualifying income" is earned income, SS benefits, or pensions. I don't think your 1099 income counts for that.

But, you probably qualify under (B)

See “SEC. 6428. 2020 RECOVERY REBATES FOR INDIVIDUALS." here
https://www.congress.gov/bill/116th...8/text#toc-idC62A2A4676F44E44B6A0D677C490FD17

I believe the House passed the Senate bill without amendments.

I believe the $2500 qualifying income provisions were removed from the bill earlier in the week and are not part of the final law.

 

[Independent]

I believe the $2500 qualifying income provisions were removed from the bill earlier in the week and are not part of the final law.

I thought I had the right bill. This is the one that passed https://www.congress.gov/bill/116th-congress/house-bill/748/actions?KWICView=false

And, you are correct, the conditions for getting the $1,200 were dropped. Now it is just

“(d) Eligible Individual.—For purposes of this section, the term ‘eligible individual’ means any individual other than—

“(1) any nonresident alien individual,

“(2) any individual with respect to whom a deduction under section 151 is allowable to another taxpayer for a taxable year beginning in the calendar year in which the individual’s taxable year begins, and

“(3) an estate or trust.

 

[ckelly78z]

My son falls in the 16-24 age group that lived at home in 2018, so he doesn't qualify for any relief check...he isn't pleased. Wouldn't it have been better to take care of this young age group far more than people like myself, and my aging parents, and inlaws who honestly don't need it ?

My son is now in an apartment, working full time, and a college graduate. Money is tight, and this relief would have helped him immensely. My DW, and I have decided to gift him half of our $2400 to help remedy the situation.

 

[statsman]

My son falls in the 16-24 age group that lived at home in 2018, so he doesn't qualify for any relief check...he isn't pleased. Wouldn't it have been better to take care of this young age group far more than people like myself, and my aging parents, and inlaws who honestly don't need it ?

My son is now in an apartment, working full time, and a college graduate. Money is tight, and this relief would have helped him immensely. My DW, and I have decided to gift him half of our $2400 to help remedy the situation.

Sounds like he could get a relief benefit based on 2020, but it would be resolved in 2021 when filing taxes for 2020. Or maybe I have it wrong. But that's a bit late to help now.

 

[camfused]

I’m sorry, but I am still confused: if I get money from this, how (advance on tax rebate, whatever) do I have to pay it back next year?

When DD gets her money, she is going to ask me if she can invest (maybe a little spend) it, or will she have to pay it back next year, somehow.

Thanks,

 

[SecondCor521]

I’m sorry, but I am still confused: if I get money from this, how (advance on tax rebate, whatever) do I have to pay it back next year?

When DD gets her money, she is going to ask me if she can invest (maybe a little spend) it, or will she have to pay it back next year, somehow.

Thanks,

Nobody will be required to repay any stimulus check received.

 

[TriumphTR3fan]

My son falls in the 16-24 age group that lived at home in 2018, so he doesn't qualify for any relief check...he isn't pleased. Wouldn't it have been better to take care of this young age group far more than people like myself, and my aging parents, and inlaws who honestly don't need it ?

My son is now in an apartment, working full time, and a college graduate. Money is tight, and this relief would have helped him immensely. My DW, and I have decided to gift him half of our $2400 to help remedy the situation.

You appear to have made a good solution to your son's dilemma. I'm sure there are many other families with the same situation. One of the purposes of the bill is to keep the economy moving. We may not need it but we can all do something.

 

[CRLLS]

My son falls in the 16-24 age group that lived at home in 2018, so he doesn't qualify for any relief check...he isn't pleased. Wouldn't it have been better to take care of this young age group far more than people like myself, and my aging parents, and inlaws who honestly don't need it ?

My son is now in an apartment, working full time, and a college graduate. Money is tight, and this relief would have helped him immensely. My DW, and I have decided to gift him half of our $2400 to help remedy the situation.

"Need" has no age group. There are many seniors who work PT in order to make ends meet. An there are many inbetweeners in that situation too. Congress decided to make the rescue package broad based, not (much) needs based. In any situation there will be some who just miss out regardless of intent. There may be some legislation in the not too distant future that could fill those missed beneficiaries. I think you are doing a good deed. If my kids were in dire need of a few thou, I would do the same. So far, so good on their parts.

 

[Tiger8693]

Wasn't sure where to post this, but this seems as good a place as any:

Saw in reading about the relief bill there is a provision that a 401k can be tapped for up to $100k, and that rules for putting it in Rollover IRA would be extended to 3 years. That is interesting. Also, if taken purely as a distribution there would be no 10% penalty if under 59.5. Wife has been furloughed, so depending on duration might be of help.

 

[jj]

My son falls in the 16-24 age group that lived at home in 2018, so he doesn't qualify for any relief check...he isn't pleased. Wouldn't it have been better to take care of this young age group far more than people like myself, and my aging parents, and inlaws who honestly don't need it ?

My son is now in an apartment, working full time, and a college graduate. Money is tight, and this relief would have helped him immensely. My DW, and I have decided to gift him half of our $2400 to help remedy the situation.

The relief checks will be based on 2019 taxes if that data is available to the Treasury. Was he on his own in 2019? If so, get him to file his taxes asap even though it's not required until July 15th. See Kitces analysis.

https://www.kitces.com/blog/analyzi...ail&utm_term=0_4c81298299-4b3655b1e2-57204617

 

[LRDave]

The relief checks will be based on 2019 taxes if that data is available to the Treasury. Was he on his own in 2019? If so, get him to file his taxes asap even though it's not required until July 15th. See Kitces analysis.

https://www.kitces.com/blog/analyzi...ail&utm_term=0_4c81298299-4b3655b1e2-57204617

Thanks for the link. This says that the drop-dead date for the Treasury to choose between 2018 AGI or 2019 AGI if available is unknown. We won't qualify based on 2018 but would based on 2019. We are waiting for a K-1 for DW's family beach house vacation rental. Don't know when we'll get it. Our accountant has already filed an extension for the LLC's returns that were due March 15th.

 

[JoeWras]

See Kitces analysis.

https://www.kitces.com/blog/analyzi...ail&utm_term=0_4c81298299-4b3655b1e2-57204617

Nice article, as usual from Kitces.

This analysis also woke me up to the $300 above the line deduction for cash donations to charities other than DAFs. Yes, you get it even with the standard deduction. This little incentive will help charities, if people even know about it.

The other thing the article woke me up on is that tax preparers have job security. Woo boy, a bunch of stuff is added that will make taxes fun to do.

 

[SecondCor521]

Thanks for the link. This says that the drop-dead date for the Treasury to choose between 2018 AGI or 2019 AGI if available is unknown. We won't qualify based on 2018 but would based on 2019. We are waiting for a K-1 for DW's family beach house vacation rental. Don't know when we'll get it. Our accountant has already filed an extension for the LLC's returns that were due March 15th.

It's a little messier, but you could always file your 2019 return now with the information you have, and amend it later when you receive the K-1.

There is a bit of a moral hazard if you qualify for a stimulus check based on your initial filing in 2019 but do not qualify for as much with your amended return with the K-1 or your 2020 return, but I think this was a well-known hazard to Congress when they drafted the bill, so I wouldn't personally have a problem with this course of action.

I'd suggest electronic filing if at all possible, since paper filing takes up to six weeks for the IRS to do the data entry. Amended returns have to be filed by paper, and are a hassle to prepare unless you're using the same tax software you used to prepare the original return. An accountant will probably also charge extra to do the amended.

If you will qualify based on your 2020 AGI, you could also just wait until next year and get it on that tax return.

 

[GTFan]

So if you're on unemployment you get an extra $600/wk, but if you're SE or contractor you get nothing right? Wonder what all the gig economy folks will think about that, there's a bazillion ride-share folks in particular that aren't going to be helped.

Yeah I know, expediency.

 

[kcowan]

It is fun to see Socialism in action! The difference with many other socialist actions seems to be the inclusion of corporate provisions. Congratulations Congress!

 

[LRDave]

It's a little messier, but you could always file your 2019 return now with the information you have, and amend it later when you receive the K-1.

There is a bit of a moral hazard if you qualify for a stimulus check based on your initial filing in 2019 but do not qualify for as much with your amended return with the K-1 or your 2020 return, but I think this was a well-known hazard to Congress when they drafted the bill, so I wouldn't personally have a problem with this course of action.

I'd suggest electronic filing if at all possible, since paper filing takes up to six weeks for the IRS to do the data entry. Amended returns have to be filed by paper, and are a hassle to prepare unless you're using the same tax software you used to prepare the original return. An accountant will probably also charge extra to do the amended.

If you will qualify based on your 2020 AGI, you could also just wait until next year and get it on that tax return.

Thanks for the insights. The bolded will likely be our best bet. I really don't want to do an amended return.

The K-1 amount will be trivial or maybe even a loss.

 

[SecondCor521]

So if you're on unemployment you get an extra $600/wk, but if you're SE or contractor you get nothing right? Wonder what all the gig economy folks will think about that, there's a bazillion ride-share folks in particular that aren't going to be helped.

Yeah I know, expediency.

Somewhere someone posted that there are provisions in the law for self-employed individuals...some sort of unemployment thing. It doesn't apply to me or anyone I know, so I didn't investigate it. But it sounds like something that might interest you (if it's true).

 

[zinger1457]

I see they snuck in a provision for wealthy real estate investors that lifts the cap for how much they write off on property depreciation on their taxes. Apparently it even allows them to go back the last couple years and amend their tax returns and apply the new cap. An estimated $170B bonus over the next few years, good to see no one has been left out. Will make our $1200 checks per person look pretty paltry.


https://www.nytimes.com/2020/03/26/business/coronavirus-real-estate-investors-stimulus.html