Update: Details of Second Stimulus Package Announced

21 December 20

With the second stimulus package expected to be passed by Senate on Monday, December 21, and passed into law soon after that by President Trump, the details are becoming clearer on the payment levels Americans can expect:

Stimulus payments: The new package includes $600 stimulus checks per adult and child. The amount per adult is half of what was provided under the original CARES Act in March. The amount per child is slightly larger than CARES provided. The new bill will also allow U.S. citizens living in households that include non-citizens to receive payment.

Payment thresholds: The size of the second stimulus payment decreases for people with earnings above $75,000 in the 2019 tax year and disappears totally for those who earned more than $99,000.

Unemployment benefits: Congress will also extend the Pandemic Emergency Unemployment Compensation program for up to 11 weeks. It provides unemployment benefits of up to $300 per week and could commence as early as December 27 and run through March 14, 2021. The Pandemic Unemployment Assistance program, which provides unemployment benefits program for contract and gig workers, currently set to expire at the end of the year, is also being extended for 11 weeks.

These extensions are significant, given that several unemployment-related programs are set to expire in March, creating another potential financial cliff for Americans who have been most severely impacted by the COVID-19 pandemic.

Housing assistance: The new bill also includes several measures for Americans struggling with rent payments. It extends the current eviction moratorium through the end of January 2021 and earmarks $25 billion for rental assistance to families facing eviction. Run through state and local organizations chosen to distribute the funding, the program will provide eligible renters assistance with rent, utility payments, and bills that have accumulated since the onset of the pandemic.

Continue to watch this blog for updates on this and other financial stories as new information is made available.

Phil Hogan, CPA, CA, CPA (Colorado)

Phil Hogan is a Canadian and US CPA working with clients throughout Canada and the US. Phil advises on cross border tax and financial planning matters. Phil can be reached at phil@beaconhillwm.ca or via telephone at 250-661-9417. You can also read more about Phil at www.Beaconhillwm.ca/team/about-phil/

This commentary reflects the personal opinions, viewpoints and analyses of the Beacon Hill Wealth Management Ltd. partner providing such comments, and should not be regarded as a description of advisory services provided by Beacon Hill Wealth Management Ltd. or performance returns of any Beacon Hill Wealth Management Ltd. client. The views reflected in the commentary are subject to change at any time without notice. Nothing in this commentary constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Beacon Hill Wealth Management Ltd. manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results. Any discussion about taxation is for educational purposes only and should not be viewed as professional advice. Consult your tax professional for tax advice on your particular situation.

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