TEXAS (CBSDFW.COM) – Federal aid is one step closer to becoming a reality for those who have been devastated by COVID-19.
On Friday, the House will vote on the $ 2 billion bill passed unanimously by the Senate.
Under the measure, the federal government will send a check or money directly to a person's account based on their income.
People who earn less than $ 75,000 a year will receive $ 1,200. While couples making less than $ 150,000 a year will get $ 2,400 plus $ 500 per child.
Attendance is gradually reduced for people who earn between $ 75,000 and $ 99,000 a year and for couples who earn between $ 150,000 and $ 198,000 a year.
Bill Dendy, a public accountant and money manager, says the government will base the payments on the most recent tax return. "So for some people, it will be the return filed for 2018. For several people, it will be the return filed for 2019."
Unemployment insurance benefits will also be expanded by granting an additional $ 600 a week above the state maximum and by providing an additional 13 weeks of federally funded eligibility once state benefits are exhausted.
The bill will also temporarily allow independent contractors and employees of nonprofit groups to receive unemployment insurance.
Dendy says, "Her freelancers, people who work in the restaurant business on occasions that are now unemployed will be able to get these unemployment benefits at the federal level."
Expanded unemployment insurance benefits are taxable income as always, but cash payments are tax-free.
Individuals will also be able to access their retirement accounts for COVID-19 related expenses without a penalty for early withdrawal.
Student loan payments can be deferred for six months without penalty or interest.
Dendy says that the unemployed should treat this as a relief, not as a stimulus package.
"Hold on to money. Don't spend it on the necessities of life, "he said." Spend only on the necessities and start to see what needs still need to be met and what things can be deferred for a while.
For those who still earn a salary, he suggests building cash reserves in case things get worse.