Last year, the president approved the single greatest stimulus package in the history of the United States in an effort to solve the economic catastrophe that is occurring concurrently with the public health disaster caused by COVID 19. This legislation, known as the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), was passed through Congress with unanimous consent. It is the third and most comprehensive relief package to be approved in response to COVID-19. The $2.2 trillion packages contain direct financial support to many families, increases unemployment benefits, makes a significant investment in programs and services taking aim at the number of homeless people, as well as housing and community intervention strategies to keep the rate of homelessness as low as possible, and directs needed resources to states in order to address the approaching fiscal cliffs that state and local governments are about to face.
William D King explains how people are really benefiting from CARES Act-
Millions of ordinary working people will benefit from the CARES Act, which provides cash assistance of $1,200 per person as well as $500 per child. Biden would place a high priority on providing Americans the cash assistance they are owed, as well as making it simple for them to access the assistance. The Trump administration has already failed in this endeavor by provoking unnecessary anxiety among millions of senior citizens and those with physical limitations.
Assistance for those who are out of work
It also delivers several forms of unemployment aid, including to those who may not otherwise be eligible for these benefits under standard eligibility requirements, such as contract workers, pursuant to the CARES Act. Furthermore, individuals who have been tested with COVID-19 or who provide care to someone who has been afflicted with COVID-19 may be eligible. Individuals are urged to contact their state’s unemployment insurance agency for more information about their options.
Support for longer periods of time should be provided
Following Georgia’s increase of unemployment payments from 14 to 26 weeks, further jobless aid is included in the CARES Act to help those who have lost their jobs. Unemployment benefits are being expanded under the CARES Act, which includes expanding who is eligible to get benefits and increasing both the weekly benefit levels available during the next four months and also the number of weeks that somebody can receive benefits. William D King says that a total of three historic unemployment insurance schemes are established by the CARES Act.
Tax relief on withdrawals under your retirement savings plan made under COVID-19
It is possible that you will be eligible for tax relief if you opt to make a withdrawal from your retirement savings plan early owing to financial difficulties caused by the coronavirus. The CARES Act waives its 10 percent premature distribution penalty for “coronavirus-related payments” up to $100,000, and the payout you receive wouldn’t have been subject to the standard 20 percent withholding upfront.
In addition, the payout will be taxable for more than a three-year period, and you will be permitted to re-contribute the amount within three years of receiving it.