Skip to main content

Direct Cash Assistance During the Coronavirus Pandemic

April 9, 2020
Statements

Last month nearly ten million workers across the country filed unemployment claims in a two-week period, surpassing previous records. This represents only the first wave of troubling economic consequences from the coronavirus (COVID-19) pandemic. Workers and their families are worried about how to pay for food, rent, utilities, and other basic necessities. I'm fighting in Congress to help provide direct assistance during these difficult times. Today I am sharing some resources that may be helpful as we cope with the economic effects of this pandemic.

Congress passed the CARES Act, which will provide a direct payment to individuals and families during the coronavirus pandemic. Individuals making up to $75,000 will receive $1,200 and couples making up to $150,000 will receive $2,400, plus an additional $500 per minor child. The payments decrease and then stop for workers making more than $99,000 ($198,000 for married workers). The IRS will deliver payments by automatic deposit to qualifying individuals who have filed their 2018 or 2019 federal income tax returns. The IRS will also make the payment by direct deposit to qualified non-filers who are Social Security beneficiaries.

Here are some answers to common questions about the direct payment:

  • Is there a minimum income threshold to be eligible for the payment?
    • There is no earned income requirement to be eligible for a payment.
  • Will the payment change my eligibility for SNAP or Medicaid?
    • The payment is considered a tax refund and will not change eligibility for federal assistance programs.
  • Will I be taxed on the payment next year?
    • The payments are federal income tax refunds and are not subject to federal income tax.
  • My child is 18 years old, but I claim them as a dependent. Will I receive a payment for them?
    • Payments will not be distributed to dependents age 17 or older, including adult dependents. I am working to fix this in upcoming legislation.
  • I make more than $75,000 as an individual or $150,000 for my joint tax filing. Will I still receive the full payment?
    • Individuals making more than the $75,000 but less than $99,000 and married workers who file their taxes jointly making more than $150,000 but less than $198,000 will receive a partial direct payment. The payments decrease by $5 for each $100 of income above the $75,000 or $150,000 thresholds. Workers making more than $99,000 and joint filers with no children making more than $198,000 are ineligible for the direct payments.
  • I receive Social Security benefits and do not file taxes. How can I receive my payment?
  • Some of my family members do not have a Social Security Number. Will we still be eligible for this program?
    • Taxpayers must have Social Security Numbers (SSN) for themselves and their qualifying children to receive this payment. In the case of mixed-status families where the filer has an SSN and the child does not, the filer should be able to claim the credit for the $1,200 ($2,400 if married) for themselves, but not the $500 per child without an SSN. We are waiting for guidance from the IRS on how payments will be distributed to mixed-status families where the filer does not have an SSN and the child does. I have advocated for expanding eligibility to include all individuals with an Individual Taxpayer Identification Number (ITIN). Please continue to check the IRS website for more information and contact my office with any questions: https://www.irs.gov/newsroom/economic-impact-payments-what-you-need-to-know(link is external)
  • Will I receive my payment as a check in the mail or as a direct deposit?
    • The IRS will make about 60 million payments to Americans through direct deposit in mid-April (likely the week of April 13th) to individuals who filed a 2018 or 2019 federal income tax return. After they make first round of payments in mid-April, the IRS will make a second round of payments to Social Security beneficiaries who did not file tax returns in 2018 or 2019 and receive their Social Security benefits via direct deposit. Likely the week of May 4th, the IRS will begin issuing paper checks to individuals. Unfortunately, the process for paper checks could take up to 20 weeks. The checks will be issued in reverse "adjusted gross income" order, beginning with the lowest income individuals.
  • How can I check the status of my payment? How can I update my direct deposit information?
    • The IRS plans to create a portal by the end of April/early May that will allow taxpayers, once they have been authenticated, to check the status of their rebate payment and update direct deposit information. Please check my website or call my office at 503-469-6010 for updates.

Distributing these direct payments is an important first step, but I know that individuals and families across Northwest Oregon need more support during this health and economic crisis. I will keep calling for ongoing direct payments that are not means tested throughout the length of this national emergency, and will advocate for expanding eligibility of the payments. Please know that I will continue fighting for you as we respond to the coronavirus pandemic.

Issues:Health CareJobs and Economy