Are we any closer to a COVID-19 relief package in Washington? Here's what you could expect in the coming weeks
News 12's Elizabeth Hashagen was joined by CPA and economic development consultant Marty Cantor this morning to discuss the latest on the COVID-19 relief plan and unemployment numbers.
The number of Americans seeking unemployment benefits fell slightly last week to 793,000, evidence that job cuts remain high despite a substantial decline in new viral infections.
Last week’s total declined from 812,000 the previous week, the Labor Department said Thursday. That figure was revised higher from the previously-reported figure of 779,000. Before the virus erupted in the United States in March, weekly applications for jobless aid had never topped 700,000, even during the Great Recession.
Federal Reserve Chair Jerome Powell is warning, "Extended periods of unemployment can inflict persistent damage on lives and livelihoods while also eroding the productive capacity of the economy." Below, Cantor talks about the unemployment situation and what it can do to those unemployed:
People are learning about a new unemployment scam now that it is tax time. Millions of Americans are opening their mail to discover a mysterious 1099-G IRS tax form for unemployment benefits they never applied for, or received.
It's the first notice many are getting that they are victims of a massive identity theft and unemployment fraud scheme. The IRS recently added guidance telling filers not to include the erroneous 1099, and to file their taxes as they would otherwise.
Filers should also check their earnings records with Social Security by logging into, or creating a My Social Security account and then checking their statements, at ssa.gov/myaccount.
If items need to be corrected, they can call Social Security at 800-772-1213 or contact a local office.
Cantor talks about a situation with one of his clients below:
Monday night we got a look at the details of this latest relief package. It's expected to pass Congress in the coming weeks through a budget reconciliation process.
Includes $1,400 payments for both children and nonchild dependents, such as college students, disabled adults and even older Americans who are claimed as a dependent for tax purposes.
Previous rounds of stimulus checks were limited to child dependents, which meant roughly 13.5 million adult dependents missed out on the payments, according to an analysis of the Census Bureau's Current Population Survey by the People's Policy Project think tank.