Home » William D King puts forward unknown facts about the CARES act

William D King puts forward unknown facts about the CARES act

William D King

For individuals as well as business people, the CARES act comes as a relief factor. The US government has passed this $2.2 trillion relief policy for drawing a balance in the economy. The coronavirus aid, relief, and economic security act have multiple provisions. For an average American, understanding these provisions is of utmost significance so that you can draw the benefit for yourself as well as your business. William D King says ever since its inception in March 2020, it has impacted the economic downturn precisely.

The global pandemic has brought about unprecedented challenges to human life. Hence, the US economy was already in recession. The policymakers thereby crafted different legislations and dedicated their effort towards designing the CARES act. It provides short-term and long-term benefits to industries, families, independent contractors, businesses, and hospitals.

Significant provisions of CARES Act as propounded by William D King

Primarily, you must realize that this Act comes with different grant programs and loans. It provides a $367 billion fund for small and medium enterprises. It also makes direct payments to multiple families in the $1200 for each adult and $500 for each child. Grant also goes to hospitals and healthcare sectors for giving a boost to their frontline businesses. These sectors have got as much as $130 billion from the CARES act. Apart from this, the following provisions are of significance:

•    Recovery rebates

As illustrated earlier, American families have got a one-time payment of about $1200 as recovery support. Individuals with AGI or adjusted gross income below $75,000 having a Social Security number are eligible for a total rebate. When it comes to rebate payment, the 2019 returns on income tax forms the basis. William D King opines that direct deposit via IRS is the rule. Individuals getting Social Security benefits are also eligible for these payments.

•    Unemployment benefit

The Act provides for not only business people but also the unemployed masses. Around $600 is provided by the central government every week to unemployed individuals as a benefit. In addition to this, they are also eligible for state unemployment benefits. However, they must qualify for some criteria. The Act extends assistance to laborers affected severely by the pandemic. However, they must not be under unemployment benefits. The category includes freelancers, part-time laborers, employed individuals, independent contractors, and others.

•    Student loan deferral

The Act suspends the payment of interest and the principal amount by six months without penalty for late payment. It includes PLUS loans, direct loans, FFEL or Federal Family Education Loan, and other programs. The programs which come within the ambit of the Department of Education fall in this category.

•    Retirement plan distribution

A profound part of the Act includes minimum distribution emanating from IRA. The retirement plan may not apply to the year 2020. Moreover, they waive off penalty tax which applies to the distribution. The policy makes provisions for the distribution of tax obligations over three following years. Hence, you have three years in your hand for reinvesting the money.

The policy incorporates provisions for helping small business entrepreneurs and self-employed personnel, whether in terms of a financial loan or tax reduction. The Act has emerged as a relief for millions of Americans.

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