Federal Unemployment Benefit
It has been several days since the expiration of the additional $600 Federal Unemployment Benefit and as of now it is anticipated that an agreement to re-instate the benefit at the $600 is likely by this Friday, August 7th.
Originally, under the Federal Pandemic Unemployment Compensation (FPUC) program, eligible individuals who were collecting certain UI benefits, including regular unemployment compensation, received an additional $600 in federal benefits per week for weeks of unemployment ending on or before July 31, 2020. Additionally, the Pandemic Emergency Unemployment Compensation (PEUC) program allowed those who have exhausted benefits under regular unemployment compensation or other programs to receive up to 13 weeks of additional benefits.
Second Round of Stimulus
After much debate and discussion about the feasibility of a second round of direct payments to Americans, it is expected the program will be renewed in it’s previous form, providing $1,200 to each individual taxpayer and $500 for each dependent. There is also a suggestion that the new round would eliminate the age cap for dependents. The direct payments have been largely agreed upon and are expected to be voted on before Congress recesses on August 8th.
During the first round, U.S. citizens and U.S. resident aliens were to receive the Economic Impact Payment of $1,200 or $2,400 if they filed married filing jointly and if they are not a dependent of another taxpayer and have a work eligible Social Security number with adjusted gross income up to:
- $150,000 for married couples filing joint returns
- $112,500 for head of household filers and
- $75,000 for all other eligible individuals
Taxpayers would receive a 5% reduction in their payment for the amount their AGI is above these amounts.