SALT LAKE CITY – There’s no way to sum up a $ 1.9 billion dollar spending bill in a short story, but the video above introduces some important aspects of the U.S. bailout plan to Utahns.
LOOK: Utah economists predict stimulus bill ‘will bounce back’ to state
Below are the most important things Utah residents need to keep in mind:
DIRECT PAYMENTS: Direct money in the form of $ 1,400 dollar stimulus checks and child tax credits must go directly into your bank account when you file taxes by direct deposit. If you receive checks by post, it should reach you in this way. Both come from the IRS.
CHILD TAX CREDIT: According to the bill, these payments should start in July. Most experts expect that the payments will be monthly, but it has not yet been finalized. You will also receive credit for January to June, but it will most likely be in the form of a tax credit when you file a return next year.
UNEMPLOYMENT: If you have already filed taxes for 2020 and have paid taxes on unemployment benefits, talk to a taxpayer about changing your tax return. The $ 10,200 release should really help and is available to you. If you are currently unemployed, the continued extra $ 300 should continue automatically as long as you keep reporting your status.
CHILD CARE CREDIT CREDIT & EARNED INCOME TAX CREDIT: These are credits, which means that if you qualify, you will receive the full amount, but it will also be with next year’s tax return. These increased credits are only in place for 2021, though Democrats were clear they want to make them permanent thereafter. Hard to know if they could get it, as they might need sixty votes in the Senate, but it’s one of the most ambiguous proposals in the bill, because it matches a proposal by Utah’s Senator Mitt Romney and the various conservative think tanks that see it as a family policy.
PAYMENT PAYMENT LOAN: Howard Headlee with the Utah Bankers Association stressed that the loan applications will now be judged on the basis of the revenue lost due to Covid, rather than the amount of revenue lost. This reporter (Max Roth here) is no expert, but my understanding is that a number of very small business owners and sole proprietorships report very little income on their tax form “Schedule C”. Previously, loans were based on the “Schedule C” income. It is not now and businesses that have investigated PPP and not applied should look again. If you’ve already applied, Headlee says you can not edit your application right now, although he hopes they will change the rule.
LOOK: Is this the last stimulus test?
Eligibility for all this money is based on the income thresholds that vary. The $ 1400 checks quickly disappear after an individual earns $ 75,000, a household earns $ 112,000 and a couple earns $ 150,000. Child tax credits start phasing out at the same points, but the phasing out is much more gradual.