HR 748, the CARES act was passed by the Senate, then the House by voice vote and signed into law by the President. This act will do many things, we will highlight what will have the most direct impact on our members.
Recovery rebates are to be directly deposited or mailed to households. The Secretary of the Treasury has stated he expects these direct deposits to start in the next 3 weeks, followed by a letter noting how the payment was made and how much it was for. Less information is available on the hard checks that people without a direct deposit bank account will recieve, but it seems likely this will take some months.
The rebates are based on 2018 or 2019 income on tax returns. The rebates start to phase out for individuals that made over $75,000 or couples over $150,000 and end at $99,000 and $198,000 repsectively. The rebate will be corrected in the 2020 tax season for anyone that is over or underpaid a refund. The full rebate is $1200 per person and $500 a child.
Additionally, there are unemployment insurance provisions that should help our members that are out of work due to the virus. Unemployment is increased by the bill $600 per week for up to 4 months and includes some self-employed workers, independent contractors and some with a limited work history. Benefits are also extended an additional 13 weeks over the current state maximum.
The best information we have currently is that it will take several weeks for Virginia to get the agreement signed with the US Government and get the additional benefits in the hands of those receiving UI. The additional benefit will likely be applied to anyone that filed on or after March 15th, but again we are waiting for final details to be announced.