Coronavirus: Your California questions about cash payments, jobless benefits answered
Yes, the money from Washington will start flowing. But probably not until April, and in some cases even later.
First, the legislation needs to be passed by the House and signed into law by President Donald Trump. That’s likely Friday. The Senate unanimously passed the bill Wednesday night, and the House will convene at 9 A.M. EDT to take it up. Easy approval is expected.
Trump said he’ll sign the bill, and so by the weekend, the government wheels will officially start turning. The most obvious benefit will be the cash payments due most people as well as extra unemployment benefits.
Here are questions raised in recent days by readers, e-mailers and callers, and the answers as best we can get them:
When will I get the cash payment?
“Most of these will be direct deposit. It will be within three weeks,” Treasury Secretary Steve Mnuchin told CNBC Thursday. Most people will see the money deposited directly into the same bank account the Internal Revenue Service uses for your tax refund. If you’ve gotten no refunds lately, the government can send a check to your last address. If your address has changed, contact the IRS.
Will Californians get extra money because of the cost of living?
A. No. The payment rules are the same for everyone everywhere. If your 2018 adjusted gross income (or you already filed your 2019 tax return) is less than $75,000 and you filed individually, you will get $1,200. Joint filers who earned less than $150,000 get $2,400. You also get $500 per child. The amount are reduced by $5 for every $100 of income, meaning individuals who earned $99,000 or more or couples who earned $198,000 or more get no payments. See the Bee’s calculator for more details.
How do you qualify if you earned too much in 2018?
If you filed your 2019 tax return, and you qualify, you will get the full payment. If you’ve been laid off recently, your payment will still be based on your past history, but congressional leaders are discussing ways to compensate you. For more detail, please check the Senate Finance Committee fact sheet:
What if your income comes from Social Security?
A. As long as you qualify under the income rules, yes. If you paid no taxes the previous two years, you’ll be in line for payments as long you have an SSA-1099, according to the office of Sen. Patty Murray, D-Washington, and an NBC News analysis.
Is there any other provision for getting cash?
A. The legislation allows people to withdraw up to $100,000 from their 401(k) or other retirement accounts without the usual penalties for what the Finance Committee calls “coronavirus-related purposes.”
What is a coronavirus-related purpose?
Anyone “who is diagnosed with COVID-19, (2) whose spouse or dependent is diagnosed with COVID-19, or (3) who experiences adverse financial consequences as a result of being quarantined, furloughed, laid off, having work hours reduced, being unable to work due to lack of child care due to COVID-19, closing or reducing hours of a business owned or operated by the individual due to COVID-19, or other factors as determined by the Treasury Secretary,” according to the Senate Finance Committee.
Who can best answer my questions?
Try contacting your local congressman or U.S. senator. Here’s a guide to finding them: https://www.govtrack.us/congress/members/CA
The IRS should be a good source of information, but since the legislation is not yet law, the agency says on its special coronavirus update page “At this time, the IRS does not have any information available yet regarding stimulus or payment checks, which remain under consideration in Congress,” the website says. “Please do not call the IRS about this. When the IRS has more specific details available, we will make it available on this page.”
Can I qualify for both state unemployment benefits as well as the new federal unemployment benefit?
Yes. You can receive up to $450 a week in California state benefits, plus an extra $600 per week until the end of the July. State benefit payments are based on wages over the past 12 to 18 months.
Can I receive unemployment benefits as well as the cash payment?
As long as you qualify for each, yes.
Who qualifies for unemployment benefits?
A. Not only those whose employers paid unemployment insurance, but “part-time, self-employed and gig workers, a large portion of California’s workforce, are included,” according to Sen. Dianne Feinstein, D-California.
When will I see benefits if I’m a first-time filer?
Probably not for at least three weeks. The state’s nonpartisan Legislative Analyst’s Office said earlier this week that the usual three week lag time is likely to grow because of the overwhelming number of claims.
Do I apply separately for federal unemployment benefits?
“We are still awaiting final word from the federal government as to the details from the federal aid package we will need to implement. As soon as those are finalized and we are able to review, the Employment Development Department will provide updated guidance to workers on our coronavirus webpage,” said department spokeswoman Loree Levy.
Will this claim process get smoother?
The watchword from the state: Please be patient. From Levy: “We are redirecting staff as much as possible to help with the unprecedented claim activity. We’re first looking for any staff members that have any experience with the unemployment insurance program.
“Claim filing is a pretty complicated with a lot of knowledge needed. That’s why it takes us at least six months to bring any new staff up to speed. So we’re starting with some of the folks who are in our Workforce Services program (those job search assistance services available in the America’s Job Centers of California), who have provided some basic assistance to people with unemployment insurance filing. We’re also tapping into our other folks like that throughout the department, including a call out to any retirees over the last few years.”
Phone lines are jammed. Where can I go to get more information?
A. This chart explains different resources in an easy to read format: https://www.labor.ca.gov/coronavirus2019/#chart. You might also contact your state senator or Assembly member.
This story was originally published March 27, 2020 at 5:00 AM with the headline "Coronavirus: Your California questions about cash payments, jobless benefits answered."
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