On this show Jason and Alex discuss the massive stimulus program called the Coronavirus Aid, Relief, and Economic Security (CARES) Act. One of the components of the Act allocated $350 billion to help small businesses keep workers employed amid the pandemic and economic downturn. Known as the Paycheck Protection Program, the initiative provides 100% federally guaranteed loans to small businesses. Another component that peaked the interest of many is the provision to send most Americans direct payments of $1,200, or $2,400 for joint filers, plus $500 for each child. The amount of the payments will be reduced for those with higher incomes. For individuals filing taxes as singles, the reduced amount begins at an adjusted gross income (AGI) of $75,000 per year and is completely phased out at $99,000. For joint filers, the reduced amount begins at $150,000 and payment is eliminated at $198,000. Your AGI will be determined by your 2019 tax filing (or 2018, if 2019 is unavailable). Yet another component that many people have started asking questions about are the provisions that have relaxed some of the retirement account rules. Jason cautions listeners to consider this as a last resort because the impact of using retirement money could have major negative affects on long term financial success. The show is simply not long enough to cover the numerous provisions to the stimulus and Jason and Alex remind listeners that the Financial Detox team at Intelligence Driven Advisers has a network of specialists dedicated to being a resource to any individual or business that has questions or needs guidance on the program.
In this show you will learn about:
- The CARES Act and a few of the provisions that might impact you
- How the Act aims to help small businesses
- How the Act aims to help most Americans via direct payments
– Some of the retirement account changes that have relaxed some of the rules