Posted by Abundant Wealth Planning LLC

Get To Know Heroes Act and What It Means For You

Get To Know Heroes Act and What It Means For You

To help consumers weather the economic downturn caused by the current COVID-19 pandemic, federal stimulus checks directed by the CARES Act in March are distributed which most of the Americans already received. Since the unemployment rate has soared into double digits and the downturn has been declared an official recession three months later, there is an intense call of stimulus checks’ second round. 

On the prospects for additional government assistance, there is always good news and bad news. Another round of stimulus payments for most U.S. households is being proposed to be authorized. This is a $3 trillion Health and Economic Recovery Omnibus Emergency Solutions, or HEROES proposition. The bill must get through the Republican-controlled Senate which was passed by the Democrat-controlled House last month. 

With the Wall Street Journal reporting that the administration’s working on its own plan, there are still signs that the White House may get behind additional stimulus funding. President Donald Trump mentioned during a press conference last week which discussed unemployment that his administration will be asking for additional stimulus money. The odds of another stimulus package are very, very high, according to his economic adviser Kevin Hassett to Journal this week. 

According to The Wall Street Journal on Thursday, Treasury Secretary Steven Mnuchin said that the second round of stimulus checks is being considered very seriously by the administration. 

It’s unclear whether what the HEROES Act’s final contents might be or if it will pass the Senate’s scrutiny. But if the bill passes, below are what Americans could look forward to.  

With the second stimulus check, how much could I get?

Compared to the Coronavirus Aid, Relief, and Economic Security Act, the HEROES Act offers a larger stimulus payment. Each member, including children, would receive $1,200 under the new legislation. A full amount will still be received by the married taxpayers earning a total of $150,000 and single taxpayers earning less than $75,000 since the income threshold would remain the same. For example, if the parents in a four people family earn less than $150,000, they would receive $4,800.

A total payment of $6,000 per family is what HEROES would cap. While under CARES, since for each child under the age of 17 is directed by the law to receive $500, a total payment of $3,400 will be received by the family of four when the parents earn less than a combined $150,000. 

Is it possible for older students to receive stimulus payments?

The restriction on older teens and college students of the CARES Act stimulus payments is one of its criticisms. Many high school juniors and seniors were excluded since only dependents under 17 years old were eligible for the $500 payments. College students who were claimed as dependents on their parents’ taxes were also excluded. 

College students and older teens would now be eligible for the $1,200 per-person payments since HEROES broadens its scope to include all dependents. 

How about immigrants?

Many immigrants including those who are staying in the U.S. legally are excluded in CARES. Stimulus money can be received by immigrants with Green Cards, there are millions of non-Green Card immigrants (haven’t qualified) but who pay taxes that are excluded. Lawsuits sparked alleging discrimination when the law also excluded Americans who are married to immigrants without Green Cards.

CARES required a Social Security number while the taxpayer identification number is what HEROES would require taxpayers to have - this number is used by immigrants to pay taxes. 

What to like?

While some Americans believe it’s best to see and wait for the economy to soar again as businesses and establishments begin their operation, some also say Americans need even more help. Democratic Senator Ed Markey of Massachusetts, Kamala Harris of California, and Senator Bernie Sanders of Vermont are among those who are advocating for bigger payments. They introduced a bill to provide to every U.S. resident $2,000 until the COVID-19 pandemic recedes. 

Millions are jobless, rent is due, a lot of bills are stacking up. The $1,200 won’t be enough for you to pay all of it. 

Every woman, man, and child needs to be provided with $2,000 a month, and for it to cover the past three months, make it retroactive. 

We can ensure everyone’s needs if we can bail out corporations.

Abundant Wealth Planning LLC
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