COVID-19 — Guidance for Workers

The Coronavirus Aid, Relief, and Economic Security (CARES Act) provides a one-time rebate to taxpayers.

Summary: Direct Payments/Rebates:

To check on the status of your rebate use the link here

Full, $1,200 economic assistance payments for American adults, including for the lowest income taxpayers, and $500 per child.
All U.S. residents with adjusted gross income up to $75,000 ($150,000 married), who are not a dependent of another taxpayer and have a work eligible social security number, are eligible for the full $1,200 ($2,400 married) rebate. In addition, they are eligible for an additional $500 per qualifying child under age 17.
- The advance payment of rebates is reduced by $5 for every $100 of income to the extent a taxpayer’s income exceeds $150,000 for a joint filer, $112,500 for a head of household filer, and $75,000 for anyone else (including single filers).
This is true even for those who have no income, as well as those whose income comes entirely from non-taxable means-tested benefit programs, such as SSI benefits.

Social Security and SSI recipients are eligible for the rebate payments:

Everyone is eligible for the full rebate payments as long as they have an SSN and their household income is not too high. Rebate payments start to phase out at the thresholds of $75,000 single, $112,500 head of household, and $150,000 married.
This includes Social Security beneficiaries (retirement, disability, survivor) and Supplemental Security Income (SSI) recipients.
Like other tax credits, these payments do not count as income or resources for means tested programs. Receiving a rebate will not interfere with someone’s eligibility for SSI, SNAP, Medicaid, ACA premium credits, TANF, housing assistance, or other income-related federal programs.
These rebates do not affect receipt of state or federal unemployment compensation.

FAQ

How will the IRS know where to send my payment?

The vast majority of people do not need to take any action. The IRS will calculate and automatically send the economic impact payment to those eligible.
For people who have already filed their 2019 tax returns, the IRS will use this information to calculate the payment amount. For those who have not yet filed their return for 2019, the IRS will use information from their 2018 tax filing to calculate the payment. The economic impact payment will be deposited directly into the same banking account reflected on the return filed.

The IRS does not have my direct deposit information. What can I do?

In the coming weeks, Treasury plans to develop a web-based portal for individuals to provide their banking information to the IRS online, so that individuals can receive payments immediately as opposed to checks in the mail.

I am not typically required to file a tax return. Can I still receive my payment?

Yes. The IRS will use the information on the Form SSA-1099 or Form RRB-1099 to generate Economic Impact Payments to recipients of benefits reflected in the Form SSA-1099 or Form RRB-1099 who are not required to file a tax return and did not file a return for 2018 or 2019. This includes senior citizens, Social Security recipients and railroad retirees who are not otherwise required to file a tax return.
Since the IRS would not have information regarding any dependents for these people, each person would receive $1,200 per person, without the additional amount for any dependents at this time.

How can I file the tax return needed to receive my economic impact payment?

IRS.gov/coronavirus will soon provide information instructing people in these groups on how to file a 2019 tax return with simple, but necessary, information including their filing status, number of dependents and direct deposit bank account information.

I have not filed my tax return for 2018 or 2019. Can I still receive an economic impact payment?

Yes. The IRS urges anyone with a tax filing obligation who has not yet filed a tax return for 2018 or 2019 to file as soon as they can to receive an economic impact payment. Taxpayers should include direct deposit banking information on the return.

I need to file a tax return. How long are the economic impact payments available?

For those concerned about visiting a tax professional or local community organization in person to get help with a tax return, these economic impact payments will be available throughout the rest of 2020.

The Coronavirus Aid, Relief, and Economic Security (CARES Act) provides a $260 billion in Unemployment Insurance benefits to match the average paycheck of laid-off or furloughed workers, an additional 13 weeks of federally-funded benefits in all states for workers who exhaust regular benefits and provide a temporary Federal Pandemic Unemployment Compensation (FPUC) of $600 a week for any worker eligible for state or federal unemployment compensation (UC) benefits.

Relief for Employees Overview

Employees affected by COVID-19 and eligible for state or federal pandemic unemployment compensation (FPUC) benefits will receive an additional $600 per week until July 31, 2020.
The FPUC combined with the underlying state unemployment benefits will replace 100 percent of wages for the average U.S. worker.
Expanded eligibility to cover self-employed and “gig economy” works who cannot work due to COVID-19.
Full federal funding for short-term compensation programs, allowing struggling employers to enter into agreements with state UC programs to reduce employee hours, but still give employees partial UC for the lost hours.

FAQ

How long will the expanded benefits be in place?

Expanded eligibility for unemployment insurance will be effect until December 31, 2020. A $600 additional benefit will be added to unemployment compensations received for weeks between when the bill is enacted and July 31, 2020

Is there a waiting period?

The CARES Act includes incentives for states to waive the waiting period. Contact the unemployment office in the state where you worked to determine whether there will be a waiting week. The Department of Labor is required to distribute the first $500 million within 60 days of enactment.

Are self-employed workers and workers in the gig economy eligible for unemployment compensation?

Under the CARES Act, self-employed workers whose states make an agreement with the Department of Labor will receive Pandemic Unemployment Assistance based on their recent earnings and will also be able to receive the $600 week on top of that benefit.

What if I’ve been out of work because of COVID-19 for several weeks already?

If you exhaust the weeks of unemployment compensation available to you through your state’s laws, you will be eligible for an additional 13 weeks of federally-funded benefits, which you will receive through your state.

How do I file for unemployment insurance?

Apply for unemployment compensation by clicking “file and initial claim” through the Pennsylvania Unemployment Compensation website here:https://www.uc.pa.gov/unemployment-benefits/file/Pages/Filing%20Instructions.aspx
More information on instructions to file and what you need to get started is available on the site: https://www.uc.pa.gov/unemployment-benefits/file/Pages/Filing%20Instructions.aspx

The Families First Coronavirus Response Act and the Coronavirus Aid, Relief, and Economic Security Act (CARES) Act provide benefits to self-employed individuals, independent contractors, “gig economy” employees, and individuals who were unable to start a new job or contract due to the pandemic

Pandemic Unemployment Assistance

States would be permitted to expand eligibility to provide unemployment compensation to workers who are not normally eligible for benefits, so long as their unemployment was connected to the COVD-19 pandemic, as determined by the state and the Department of Labor.
Expanded eligibility would provide benefits to self-employed individuals, independent contractors, “gig economy” employees, and individuals who were unable to start a new job or contract due to the pandemic.
Individuals would apply for these temporary new federal benefits at the state UC office, and states would be fully reimbursed for the cost of benefits and administration.

Credit Against Self-Employment Tax

Self-employed workers and independent contractors can claim a credit against their self-employment taxes for missed work if they otherwise would have been eligible for family medical leave or paid sick leave had they worked for someone else.
For the family leave credit, self-employed individuals can receive a credit of either $200 per day or 67% of their average daily self-employment income, whichever is less, for up to 50 days (maximum of $10,000).
For the paid sick leave credit, the credit is the lesser of $511/day or the average daily self-employment income. It is available for up to 10 days (maximum $5,110).
- Average daily self-employment income is equal to the net earnings from self-employment for the taxable year divided by 260.
Self-employed individuals must maintain documentation to support their eligibility for the credits, as outlined by the Secretary of Treasury.

Paycheck Protection Program

The CARES Act provides $349 billion in assistance through federally guaranteed loans to small businesses of 500 employees or less.
Independent contractors and other self-employed individuals, i.e. gig workers and freelancers, are eligible for this program.
Loans can contribute to general business purposes, such as payroll costs, mortgage and rent payments, and utility payments; as well as:
- payment for vacation, parental, family, medical, or sick leave;
- severance payments;
- payment for group health care benefits;
- or payment of retirement benefits.
The maximum loan amount is either $10 million or two-and-a-half months’ payroll, whichever is less.

Emergency EIDL Grants

Small business owners, including self-employed individuals and independent contractors, can receive a $10,000 advance on an Emergency Economic Injury Disaster Loan (EIDL) that does not have to be paid back – even if the borrower does not qualify for a Small Business Administration loan.
Applicants will be approved based on their credit score; submitting a tax return is not required.
Loans can be used to:
- provide paid sick leave to employees unable to work due to the COVID–19;
- maintain payroll during substantial business slowdowns;
- meet the increased costs of materials due to interrupted supply chains; make rent or mortgage payments; and
- repay obligations that cannot be met due to revenue losses

Additonal Resources on the COVID-19 outbreak and the economic fallout:

Rep. Dean hosted a Telephone Town Hall focused on the economic impact of COVID-19 on March 20th.

Our office's COVID-19 Health Guidance

Our office's COVID-19 Workers Guidance

Summary of COVID-19 Emergency Package One: Coronavirus Preparedness and Response Supplemental Appropriations Act, 2020

Summary of COVID-19 Emergency Package Two: Families First Coronavirus Response Act

Summary of COVID-19 Emergency Package Three: The CARES Act

SNAP Fact Sheet

USDA and Farm Resources

House Appropriations Committee's Summary of The CARES Act

Military and Veterans Guidance

Emergency and Paid Sick Leave Information