IRA Financial’s Adam Bergman Esq. discusses the $900 billion stimulus package that was just introduced to help individuals and small business owners who continue to be affected by the COVID-19 pandemic.
Please note, this podcast was recorded when the $900 billion stimulus package was announced. Obviously, the bill was signed by President Trump and stimulus checks are being sent to all qualified Americans and their dependent children. Trump was hesitant to sign the bill because he wanted $2,000 checks to be sent to everyone. Although the Democratic-controlled House passed that to the Senate, Republican Mitch McConnell held it up. Mr. Bergman shares all the provisions from the bill as it currently stands.
$900 Billion Stimulus Package Details
Here’s what Americans can expect from this stimulus package:
Stimulus Checks
As we touched upon, each eligible individual will receive a check for $600. Plus, all dependent children under the age of 16 will receive the same amount as well. Of course, this is less than the $1,200 checks that went out earlier this year thanks to the CARES Act. Children will receive an $100 more than the previous amount. To be eligible for the check, the individual must earn less than $75,000 to receive the full amount, while couples who file jointly must have an adjusted gross income less than $150,000. While this is not ideal for many people, it should help a little bit, especially if you have children.
Unemployment
The CARES Act again went above and beyond providing an extra $600 per week for those collecting unemployment. The new $900 billion stimulus package allocated half that amount, or $300, for the jobless for the next eleven weeks. This provision is now extended to self-employed individuals and gig workers and those who have exhausted their state benefits. That will help those who are not W-2 employees get the help they so desperately need.
Small Business Owners
One of the major provisions of the CARES Act, was the Payroll Protection Program (PPP). Billions of dollars were allocated to small business owners who had a need. They were provided with forgivable loans to help retain employees through the COVID-19 pandemic. The new stimulus package adds over $280 billion in small business loans.
Even if you got a PPP loan from the first bill, you can still get a second loan if you meet the requirements. Plus, you now get a tax deduction on that loan money you have already received! As a tax lawyer, Mr. Bergman is thrilled with this “double bonus.”
Another bonus is the “3 Martini Lunch Bill.” To encourage businesses to dine at restaurants, you can now deduct food and beverage provided by restaurants only. Obviously, this is way to help one of the hardest hit industries. This deduction is good through 2022, but is only for businesses and must be a business expense.
Other Provisions
Although Mr. Bergman doesn’t cover these in the podcast, we just wanted to share some other important provisions of the $900 billion stimulus package. For renters, the eviction b an has been extended to January 31, 2021. Further, $25 billion will be used to help qualified renters help pay for rent and utilities.
Moreover, billions of dollars will be given for the vaccines now in development. This will help create more vaccines and get them to the public. The funds will also be used for more testing and contact tracing. Lastly, billions will provided for education, child care and the SNAP program – Supplemental Nutrition Assistance Program.
Thanks for Listening
Just wanted to give one last thank you this year for being a loyal listener to Adam Talks. We hope your family and friends are doing well and you are all okay financially. Although this stimulus package doesn’t have any retirement-related provisions, we felt it was important to share our thoughts. Wishing all of the self-directed nation a happy and healthy new year!
Don’t forget to check out our SoundCloud page for all our episodes and we will see you in 2021!
