The CARES Act provided a lifeline for taxpayers and small businesses. But as a one-time cash payment, many fear that it didn’t do enough to support taxpayers in one of our country’s greatest times of need. Especially in light of the fact that many people still have not received their stimulus checks.
To address this, members of Congress have made two separate proposals, one that would provide Americans over the age of 16 with a $2,000 monthly check for up to 12 months, and one that would cancel rent and mortgage payments through the duration of the coronavirus emergency.
Let’s take a deeper look:
Proposal #1: $2,000 Monthly Stimulus Check
Representatives Ro Khanna (D-CA) and Tim Ryan (D-OH) introduced the Emergency Money for the People Act. This Act, if passed, would provide additional cash payments to Americans who have been impacted by the COVID-19 pandemic.
The Emergency Money for the People Act would provide a $2,000 monthly payment to every qualifying American over the age of 16 for up to 12 months.
This would include individuals who were left out of the CARES Act, such as some high school and college students and adults with disabilities who were ineligible to receive the stimulus check because they were claimed as a dependent on another tax return.
Monthly Stimulus Payments Would Be Easier to Receive
Not everyone has a bank or a home address. To address this, the Emergency Money for the People Act calls for individuals to get this money through direct deposit, check, pre-paid debit card, or mobile money platforms such as Venmo, Zelle, or PayPal.
$2,000 Monthly Stimulus Check Eligibility:
- Every American age 16 and older making less than $130,000 annually would receive at least $2,000 per month.
- Married couples earning less than $260,000 would receive at least $4,000 per month.
- Qualifying families with children will receive an additional $500 per child – for up to three children.
- Those who had no earnings were unemployed, or are currently unemployed would also be eligible for the stimulus even if they didn’t file a tax return.
- Those who were not eligible in 2019 or 2018 but would be eligible in 2020, could submit at least two consecutive months of paychecks to verify income eligibility.
You can learn more on Rep. Khanna’s website or read the full bill here.
See this article to see the current one-time $1,200 stimulus check rules.
Proposal #2: Cancel Rent & Mortgage Payments Through The Coronavirus Emergency
Representative Ilhan Omar (D-MN) introduced the Rent and Mortgage Cancellation Act. This Act, if approved, would call for a nationwide cancellation of rents and home mortgage payments through the duration of the coronavirus pandemic, or up to one year.
The bill would include:
- Full rent payment forgiveness for your primary residence
- Full mortgage payment forgiveness for your primary residence
- No accumulation of debt for renters or homeowners
- No negative impact on their credit rating or rental history.
- It would establish a relief fund for landlords and mortgage holders to cover losses
- It would create an optional fund to finance the purchase of private rental properties to increase the availability of affordable housing.
The bill would be retroactive to March 13, 2020, and would last for one year, unless extended. Renters and homeowners who made payments during April 2020 would be reimbursed for their payments.
No Double-Dipping Allowed. The bill would only allow taxpayers to receive coverage for their primary residence. It would not cover second homes, vacation homes, or other non-primary residences. Those who have both a mortgage and also rent a home would have to choose the home for which they would want to receive financial relief.
Landlords and Mortgage Companies Would be Covered Through a Fund Managed Through the Department of Housing and Urban Development
The Department of Housing and Urban Development would create a relief fund for lenders and landlords to cover the lost rental and mortgage payments they would have received.
To receive these funds, lenders and landlords would be required to follow federal guidelines for fair lending and renting practices for five years.
Our entire Team at MillerMusmar CPAs is here to help you navigate through these programs. Please contact us if you require our assistance.
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Ryan Guina, Proposed: $2,000 Monthly Stimulus Checks And Canceled Rent And Mortgage Payments For 1 Year, Forbes, [Internet], Apr 18, 2020