You may also hear these called “stimulus checks” in the press or from other people.
U.S. residents making under $75,000 ($112,500 for head of household and $150,000 married), are eligible for the full recovery rebate. The recovery rebate is $1,200 for individuals and $2,400 for a couple. Additionally, families are eligible for an additional $500 per child. A typical Oklahoma family of four is eligible for a $3,400 recovery rebate.
Adults who are claimed as dependents of another taxpayer or individuals without a work-eligible Social Security Number are not eligible.
The rebate is phased out by income. The amount is completely phased-out for single filers with incomes exceeding $99,000, $146,500 for head of household filers with one child, and $198,000 for joint filers with no children.
Here’s how to calculate how much your family might receive. Start with your joint income, then add $500 per child. That’s the starting rebate amount. The rebate amount is then reduced by $5 for each $100 that a taxpayer’s income exceeds the initial phase-out threshold ($150,000 for a couple).
Therefore, for a family of two adults and two children, the amount is not completely phased out until the joint income exceeds $218,000.
If your income in 2019 was in the phase-out range you would still receive a partial rebate based on your 2019 tax return. However, the rebate is actually an advance on a tax credit that you may claim on your 2020 tax return. Therefore, if your 2020 income is below the threshold, any additional credit you are eligible for will be refunded or reduce your tax liability when you file your 2020 return next year.
No, the recovery rebate is not considered income. Therefore, you do not have to pay taxes on it.
No, if the amount you qualify based on 2020 income is less than what you qualify for based on your 2019 tax return, it does not have to be paid back.
In general, a child is any dependent of a taxpayer under the age of 17. Any child who is a qualifying child for the purposes of the Child Tax Credit is also a qualifying child for the purposes of the recovery rebate.
No, the additional $500 per child is limited to children under 17.
Yes, there is no minimum income requirement. Even individuals with $0 of income are eligible for a rebate so long as they are not the dependent of another taxpayer and have a work-eligible SSN.
Yes, as long as they are not the dependent of another taxpayer.
If seniors receive an SSA-1099 or a Form RRB-1099, they do not need to take any other action. However, they are encouraged to file their 2019 tax return to ensure they receive their recovery rebate as quickly as possible.
Only if they are not considered a dependent of their parents. Generally, a full-time college student under the age of 24 is considered a dependent if their parent(s) provide more than half of their support.
For the vast majority of Americans, no action on their part will be required to receive a rebate check since the IRS will use a taxpayer’s 2019 tax return if filed or their 2018 return if they haven’t filed their 2019 return yet.
Individuals who may not file taxes because they don’t owe federal income taxes should still file a 2019 tax return in order to receive the rebate check.
After the legislation is enacted, the IRS will move quickly to determine rebates and distribute them to families. Once established, their goal is to send electronic deposits in as quickly as three weeks. Paper checks will take longer because the IRS is limited in how many checks may be mailed each day.
The best way to ensure you receive a recovery rebate is to file a 2019 tax return if you have not already done so. This could be accomplished for free online from home using the IRS Free file program.
No. The only offset that will be enforced applies to those who have past due child support payments that the states have reported to the Treasury Department.
The IRS has extended the federal income tax filing season. Returns and payments are now due July 15, 2020. Taxpayers can also defer federal income tax payments due on April 15, 2020, to July 15, 2020, without penalties or interest, regardless of the amount owed.
This deferment applies to all taxpayers, including individuals, trusts and estates, corporations and other non-corporate tax filers as well as those who pay self-employment tax. Taxpayers do not need to file any additional forms or call the IRS to qualify for this automatic federal tax filing and payment relief.
Individual taxpayers who need additional time to file beyond the July 15 deadline can request a filing extension by filing Form 4868 through their tax professional, tax software or using the Free File link on IRS.gov. Businesses who need additional time must file Form 7004.
NOTE: State filing and payment deadlines may not be affected by this change to the Federal deadline. The IRS urges taxpayers to check with their state tax agencies for details about due dates. More information is available at TaxAdmin.org.
This legislation creates a temporary Pandemic Unemployment Assistance program through December 31, 2020, to provide unemployment benefits to those not traditionally eligible for unemployment benefits (self-employed, independent contractors, those with limited work history, and others) who are unable to work as a direct result of the coronavirus public health emergency.
Furthermore, an additional $600 per week payment to each recipient of unemployment insurance or Pandemic Unemployment Assistance for up to four months if they lost their job due to the coronavirus.
Finally, this legislation also provides an additional 13 weeks of unemployment benefits through December 31, 2020, to help those who remain unemployed after weeks of state unemployment benefits are no longer available.
For additional information related to filing for unemployment or unemployment benefits, more information is available on the website of the Oklahoma Employment Security Commission: https://www.ok.gov/oesc/.
Yes. Our legislation makes sure that everyone can access free testing for COVID-19 and guarantees that all treatments, including new treatments that have not yet been developed are covered by all insurance plans.
Additionally, if you have a high deductible plan that normally requires you to meet your deductible before being eligible for tele-health services, this legislation waives that requirement.
This bill also allows patients to use funds in HSAs and Flexible Spending Accounts for the purchase of over-the-counter medical products, including those needed in quarantine and social distancing, without a prescription from a physician.
If you are uninsured or uninsured, you do not need to worry. This bill ensures that uninsured individuals can receive a COVID-19 test and related treatment.
For seniors, Medicare Part D plans will provide up to a 90-day supply of a prescription medication if requested during the COVID-19 emergency period.
For students whose school year has been disrupted as a result of COVID-19, this term will be excluded from the term counting negatively toward your lifetime subsidized loan eligibility, or negatively toward Pell Grant eligibility. This bill also ensures that a student is not required to return Pell grants or federal student loans to the Secretary of Education. During this covered period, the student’s grades do not affect a student’s federal academic requirements to continue to receive Pell Grants or student loans.
Yes, for federal loans, the bill directs the Secretary of Education to defer student loan payments, principal and interest for six months without penalty. For additional resources from the Department of Education, please click here.
Yes, the legislation allows institutions to issue work-study payments to students who are unable to work due to work-place closures as a lump sum or in payments similar to paychecks.
For teachers who could not finish their year of teaching service as a result of COVID-19, their partial year of service shall be counted as a full year of service toward TEACH grant obligations or Teacher Loan Forgiveness. Additionally, it waives the requirement that teachers must serve consecutive years of teaching service for Teacher Loan Forgiveness eligibility, if a teacher’s service is not consecutive as a result of COVID-19.
The CARES Act provides $377 billion to help prevent workers from losing their jobs and small businesses from going under due to economic losses caused by the COVID-19 pandemic. There are two programs you can apply for assistance under:
All businesses who meet the Small Business Administration’s designation as a small business are eligible; additionally, any company with fewer than 500 employees is also eligible.
The stimulus includes $17 billion in funding to provide immediate relief to small businesses with existing SBA 7(a), 504 or microloans. Under this provision, SBA will cover all loan payments for existing SBA borrowers, including principal, interest and fees for six months. This relief will also be available to new borrowers who take out an SBA loan within six months after the President signs the bill.
Yes, while existing SBA borrowers receive six months debt relief, they may also apply for a PPP loan and receive the payroll loan forgiveness. However, the six months of SBA payment relief may not be applied to payments on PPP loans.
A business that receives an EIDL between January 31, 2020 and June 30, 2020, as a result of a COVID-19 disaster declaration is eligible to apply for a PPP loan or the business may refinance their EIDL into a PPP loan. For a business that receives both an EIDL and a Paycheck Protection loan, the use of the loan must go for different things.
For example, a business can receive an EIDL for working capital and a PPP loan for payroll assistance. In either case, the emergency EIDL grant award of up to $10,000 would be subtracted from the amount forgiven in the payroll protection plan.
The funds for the EIDL grant (up to $10,000 of the loan) may be used to provide paid sick leave to employees, maintaining payroll, meet increased production costs due to supply chain disruptions, or pay business obligations, including debts, rent and mortgage payments. Eligible grant recipients must have been in operation on January 31, 2020. The grant is available to small businesses, private nonprofits, sole proprietors and independent contractors, tribal businesses, as well as cooperatives and employee-owned businesses.
Funds from PPP loans can be used for all aspects of your business. However, up to eight weeks of payroll costs, including salary, wages and payment of cash tips (up to an annual rate of pay of $100,000); employee group health care benefits, including insurance premiums; retirement contributions; and paid leave will be forgiven.
The maximum loan amount intended for payroll and operating costs for small businesses is the monthly payroll times 2.5, with a maximum cap of $10 million.
Under the PPP, nonprofits and churches designated as 501(c)(3) may participate in the Paycheck Protection Program. Physician practices are eligible, regardless of how they are structured, but 501(c)(6)s are NOT eligible.
Yes, in the Paycheck Protection Program, there is flexibility to allow businesses to rehire employees they have laid off and still qualify for payroll loan forgiveness. In order to be eligible for forgiveness under these circumstances, a business must simply prove to a lender that they were in business before February 15, 2020, and had these employees on payroll.
Small and midsize employers can begin taking advantage of two new refundable payroll tax credits, designed to promptly and fully reimburse them, dollar-for-dollar, for the cost of providing coronavirus-related leave to their employees.
The IRS has additional details available here.
Only those nonprofits that are 501(c)3 organizations are eligible for the small business assistance provided in this legislation.
Nonprofits and churches designated as 501(c)(3) may participate in the Paycheck Protection loan program. Physician practices are eligible, but unfortunately, most trade associations (therefore most Chambers) are organized at 501(c)(6)s and are not eligible to participate.
Yes, this bill encourages banks to provide further relief to small business borrowers by allowing them to extend the duration of existing loans beyond existing limits; and enables small business lenders to assist more new and existing borrowers by providing a temporary extension on certain reporting requirements.
The SBA has three lending programs: 7(a), CDC/504, and Microloan. Each program has its own lending practices and eligibility requirements for lenders. To obtain more information about these programs and eligibility, click here. To contact a lender relations specialist at your local SBA district office to start the application process, please click here.
There are only two forms for all 7(a) lending programs. For additional information on lending in the 7(a) program click here.
The legislation makes $1 billion available for the Business and Industry Loan Guarantee program, which provides much-needed financing to rural business owners that might not be able to qualify for a loan on their own. Eligible businesses may apply for this in addition to the other SBA programs.
This program offers loan guarantees to for-profit businesses, nonprofits cooperatives, Federally-recognized Tribes, and public bodies if they live in an eligible area. Interested applicants can learn more about the loan process here and inquire about the loan through their lender.
Lenders send applications and questions to the USDA state office. Applicants can check if their address qualifies for a loan here.
The CARES Act provides $100 million to cover grants and loans for the costs of construction, improvement or acquisition of facilities and equipment needed to provide broadband service in eligible rural areas.
The program offers 100 percent grants, 50 percent loan / 50 percent grants, or 100 percent loans. To learn more about the program, potential applicants can check here. To determine if you live in an eligible service area, click here and apply by March 31, 2020.
Additionally, this bill provides additional money for grants specifically for distance learning and telemedicine for rural communities through the Distance Learning and Telemedicine program. For more information on the program and how to apply, click here. The Oklahoma representative for this program is Robert Machado. He can be reached via email: Robert.Machado@usda.gov.
While SNAP benefits are handled at the state level, the bill provides additional funding for SNAP to cover waiver authorities granted in previous legislation and anticipated increases in participation as a result of coronavirus. Eligibility for SNAP benefits is based on need. This means the amount of food benefits is based on the number of people in the household and the amount of income available to the households.
To determine if you are eligible for SNAP benefits, click here for the Oklahoma SNAP program eligibility page.
Yes, the CARES Act expanded the Child Nutrition Program by $8.8 billion and granted flexibility for schools and other providers to continue to provide benefits when schools are not meeting.
For specific information regarding the program at your child’s school, contact the school or school board directly.
Yes, you can still enroll your child in the Child Nutrition Program. Please contact your child’s school or school district to receive the proper forms and process to enroll in the program.
The CARES Act gave $100 million to the Emergency Food Assistance Program. The Emergency Food Assistance Program (TEFAP) is a federal program that provides eligible Americans with emergency food assistance at no cost.
States provide the food to local agencies that they have selected, usually food banks, which in turn distribute the food to soup kitchens and food pantries that directly serve the public. For more information, visit the Emergency Food Assistance Program website or contact the Oklahoma TEFAP administrator, Gina Kazerooni at 405-521-6472 or email@example.com.