The provisions come at an urgent moment for the millions of jobless: Democrats had been racing to get the bill signed into law before federal unemployment benefits begin to lapse on Sunday. Under its terms, a $300 weekly supplement to other unemployment payments will be extended through Sept. 6. The Pandemic Unemployment Assistance program will be available for at least 79 weeks, up from 50, and run through Sept. 6.
In addition, individuals with an adjusted gross income of $75,000 or less — and married couples filing jointly with incomes of $150,000 or less — will receive direct payments of $1,400 per person.
Economists say the road ahead remains bumpy. States have faced challenges with processing payments and combating fraud as unemployment programs have ramped up, and it is unclear if they will be plagued by similar difficulties with the new round of aid. But now that states have had test runs, there is tentative optimism that such hiccups will not occur.
Frequently Asked Questions About the New Stimulus Package
Buying insurance through the government program known as COBRA would temporarily become a lot cheaper. COBRA, for the Consolidated Omnibus Budget Reconciliation Act, generally lets someone who loses a job buy coverage via the former employer. But it’s expensive: Under normal circumstances, a person may have to pay at least 102 percent of the cost of the premium. Under the relief bill, the government would pay the entire COBRA premium from April 1 through Sept. 30. A person who qualified for new, employer-based health insurance someplace else before Sept. 30 would lose eligibility for the no-cost coverage. And someone who left a job voluntarily would not be eligible, either. Read more
This credit, which helps working families offset the cost of care for children under 13 and other dependents, would be significantly expanded for a single year. More people would be eligible, and many recipients would get a bigger break. The bill would also make the credit fully refundable, which means you could collect the money as a refund even if your tax bill was zero. “That will be helpful to people at the lower end” of the income scale, said Mark Luscombe, principal federal tax analyst at Wolters Kluwer Tax Accounting. Read more.
There would be a big one for people who already have debt. You wouldn’t have to pay income taxes on forgiven debt if you qualify for loan forgiveness or cancellation — for example, if you’ve been in an income-driven repayment plan for the requisite number of years, if your school defrauded you or if Congress or the president wipes away $10,000 of debt for large numbers of people. This would be the case for debt forgiven between Jan. 1, 2021, and the end of 2025. Read more.
“We’re hoping that states won’t see any break in benefits, and for those in the midst of receiving benefits, that there will be no disruption,” said Nicole Marquez, director of social insurance at the National Employment Law Project, a research and advocacy group.
That would be a particularly welcome development for the legions of long-term unemployed. According to government data, the number of those jobless for at least six months grew in February to 4.1 million, representing more than 40 percent of the total number of unemployed.
Still, despite the lingering apprehension about the condition of the economy, recent data has fueled renewed hope in the staying power of the rebound.
Article source: https://www.nytimes.com/2021/03/11/business/economy/unemployment-claims-decline.html
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