The CARES Act is a bipartisan stimulus package that was signed into law on March 27 and is intended to provide financial relief to workers, businesses, and families across the country who are suffering due to the economic impacts of the coronavirus. The package includes direct payments to individuals, expanded unemployment benefits, student loan changes, and more.
Most adults making $75,000 or less will receive $1,200 in a non-taxable rebate; families with children 16 years of age and younger will receive an additional $500 per child. The California State Assembly stimulus calculator can help you determine how much you will receive from the IRS. Everyone in the household must have a social security number to be eligible. Most young adults who are still claimed as a dependent on their parents’ tax returns will be ineligible. The IRS will be using either 2018 or 2019 tax return information to determine payments; anyone that hasn’t filed their 2019 tax return and who is able to do so, is encouraged to provide the most up-to-date information as soon as possible. More information and updates on the stimulus bill and its economic impacts can be found on the IRS’ coronavirus response webpage.
Unemployment benefits will also expand due to the stimulus bill. Self-employed individuals such as gig workers and freelance workers, as well as part time employees, will now be eligible for unemployment payments. The exact amount an individual will be eligible for varies by state, but the bill provides an additional $600 per week for four months on top of state benefits. Workers can learn more about the federal unemployment updates and apply for unemployment benefits on the Department of Labor’s coronavirus response webpage.