House Democrats have proposed a second round of $1,200 stimulus checks reports Bambridge Accountants New York.
According to a review of the HEROES Act, the newest coronavirus stimulus package, the key inclusions are:
- second stimulus payment of $1,200 for individuals - up to $6,000 per household
- plus $1,200 per child for a maximum of 3 children
- $10,000 student loan forgiveness
- $175 billion for assistance to help pay mortgages and rents
For the stimulus checks, the income limits will be the same as the first payments:
Single - $75,000
Joint - $150,000
This would be a one-time, non-taxable payment.
The payment per child has increased from $500 to $1,200, up to a maximum of 3 children.
Federal and private student loans payments, together with interest, would be suspended until September 2021 – there would also be forgiveness of student loan debt of up to $10,000.
The new Act will also seek to fix issues from the CARES Act where some U.S. expats were excluded from receiving the stimulus payments.
In cases where a joint return is filed and one person does not have a Social Security Number (SSN), under the CARES Act the stimulus checks were stopped – even if the spouse had an Individual Tax Identification Number (ITIN).
The HEROES Act will rectify that and allow for joint filers (where one does not have a SSN) to claim the original stimulus check for $1,200 and this second payment.
$175 billion has been allocated to help with rent and mortgages.
Of that, $100 billion will be set aside for assistance with rent and other housing costs for those who are low or medium income earners in their area.
The remaining $75 billion is allocated to prevent mortgage defaults and property foreclosures for families.
The financial aid would be for federally-backed and private home loans.
The HEROES Act also bans evictions for renters for 1 year for non-payment of rent.
Federal and private home loans could also be suspended for 12 months.
Contact Alistair Bambridge, firstname.lastname@example.org, +1 646 956 5566.
Bambridge Accountants has offices in London and New York, specializing in creatives and U.S. expats around the world.