Will there be a second round of stimulus payments?

The House of Representatives recently passed the Heroes act – Health and Economic Recovery Omnibus Emergency Solutions Act, a $3 trillion proposal to provide economic relief. While the bill is expected to be voted on by the Senate, many experts do not believe it will be signed into law.

Here is what you need to know about this bill if it is passed:

Additional Stimulus Payments for Individuals 

If the bill passes, individuals can expect “a second” round of economic stimulus payments.  Each individual would qualify for a payment of $1,200 for each household member up to $6,000.  Income thresholds would still exist if the money is provided.  Married couples would qualify if their adjusted gross income (AGI) is less than $150,000 (HOH $112,500, Singles $75,000). The amounts will phase out above these levels for qualified individuals.

Tax Deductions Available for Teachers + First-Line Workers 

The bill provides an increase to a tax deduction currently available to classroom teachers.  Currently, teachers are able to take an above the line deduction of $250 for supplies purchased for the classroom.  This bill increases the amount classroom teachers and other qualified school employees are able to deduct up to $500.  In addition, it also provides an option for first-class responders to take a similar deduction for professional courses and uniforms purchased during the year.

Unemployment Benefits Extended 

The bill also provides an extension to Pandemic Unemployment Assistance to January 31, 2020.  Currently, the additional Pandemic Unemployment Assistance of $600 is available to those who are unemployed at this time.  This amount is expected to discontinue on July 31, 2020.  If this bill passes, it will extend those benefits until January 31, 2021, to those who qualify.

Other Provisions 

In addition, the bill proposes to do the following:

  • Pay up to $10,000 for student loan borrowers, and

  • Provide hazard pay for those on the front line.

Extra Tips: Grants for small business owners + individuals 

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Kemberley Washington, CPA, is a best seller author, news contributor and owner of Washington CPA Services, LLC. She contributes to her blog Kemberley.com and 21daysof.com.

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