Unless you’ve been living under a rock or you’re on a spiritual getaway with Jared Leto, you know that the coronavirus pandemic has sent shockwaves through the world economy. Stock markets have seen historic drops and oil is projected to reach a mere $10 a barrel as people stay in their homes to avoid spreading the virus. Many businesses have seen their revenue vanish seemingly overnight, which unfortunately has meant millions of Americans losing their jobs.
On Wednesday, the House of Representatives agreed to a $2 trillion stimulus package to aid out-of-work households and businesses affected by the stunted economy. Many Americans can soon expect to see a check from the government intended for food and other living expenses. But don’t get too excited, because this is far from a government-sponsored shopping spree.
You may be asking yourself, “what does this mean for me?”
Well, first of all, it’s just a check. Just one. This bill only allows for a one-time payment. However, future legislation is expected to allow for additional payments considering how long people may need to quarantine.
How much money you’ll get depends on your current income. Here’s how it breaks down.
-Individuals who make under $75,000/year will receive $1200.
-Individuals who make over $75,000 will have $5 taken away for every additional $100 above the threshold ($99,000 or above receive nothing).
-Couples who make under $150,000/year will receive $2400. Any additional income is subject to the rule above ($198,000/year receive nothing).
-Individuals classified as “Head of Households” who make up to $112,500 will also receive $1200.
-$500 is added for every child in the household.
The IRS bases this information off your 2019 tax return, or your 2018 report if you haven’t filed it yet. That math wasn’t too hard, was it?
Is this government money enough to live on? For many families, it isn’t.
The maximum amount a family of four can receive from this legislation is $3,400. According to the Economic Policy Institute’s Family Budget Calculator, a family of four’s average monthly budget in the country’s largest metropolitan areas range from $6000 to $12,000. A family of four in Los Angeles is estimated at $7,691.
Other countries have taken additional measures to ease the financial burden for their citizens. Canada is issuing $2000 checks for the next four months and has given a temporary wage subsidy to all small businesses. Venezuela has completely suspended rent payments and prohibited layoffs.
The reality is, there’s a long way to go before the economy is back to normal. In the meantime, if you do receive a check – spend it wisely. Be sure to help others who may need it, spread positive vibes, and stay healthy!
Also, check out the app that’s changing the quarantine game: