Direct payments to individuals
Under the plan as it was being negotiated, single Americans would receive $1,200, married couples would get $2,400 and parents would see $500 for each child under age 17. However, the payments would start to phase out for individuals with adjusted gross incomes of more than $75,000, and those making more than $99,000 would not qualify at all. The thresholds are doubled for couples.
Student loan payments suspended
The Department of Education would suspend payments on student loan borrowers without penalty through September 30, according to the bill. CNN reported last week that the Department of Education was planning to allow student loan borrowers to suspend payments without penalty and accruing interest for at least 60 days.
REAL ID deadline delayed
The deadline to obtain a REAL ID, federally mandated identification that will be needed for passengers to board aircraft, will be extended until at least September 2021 — a year past the current deadline.
• Loan forgiveness for certain small business loans. Employers may be eligible for a portion of their federal small business loans to be forgiven (tax-free) for amounts spent for certain payroll, sick leave, family leave and other overhead expenses between Feb. 15 and June 6, as well as certain other debt obligations incurred prior to Feb. 15.
• Additional Small Business Administration loan payments. The Small Business Administration will pay the principal, interest and any associated fees that are currently owed on 7(a) loans, 504 loans and micro-loans. This would be for a six-month period starting on the next payment due date. Loans that are already on deferment would include an additional six months of payment by the Small Business Administration beginning with the next payment.
• Income tax break for some employees. Employee borrowers of student loans that receive assistance from their employers in paying off student loans will not have to pay income tax on any payment assistance, up to $5,250, they receive between enactment of this law and Jan. 1, 2021.
• Deferred Social Security tax. Employers and self-employed individuals would be allowed to defer payment of their employer share of the Social Security tax until Dec. 31.
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