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Stimulus Monies…A Generation Left Out

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Between COVID 19 and the stimulus monies, the news does not talk about anything else these days. Not that I watch the news too often either.

I would love to know how the BAD community feels about the Stimulus plan…the monies to the American people, the loans (possibly forgivable) to small businesses, the raise and expansion in unemployment benefits and much more. I know for me, the money arrived at a good time as work has slowed down and I did not want to dip into my savings.

But I’m not sure or knowledgeable enough about it all to have a strong opinion on whether it will do the trick in bringing our economy back or help keep people afloat as businesses and people adapt to this new normal. What do you think?

One thing that threw us all off was that the twins didn’t qualify for any type of stimulus monies. Because they are claimed as dependents and over the age of 17, they were not included in the monies to me nor did they receive their own. Do you think this was an oversight on Congress’ part or intentional?

And if intentional, why? These young adults, if still claimed by their parents, are most likely college students or in training programs of some sort and certainly not self sufficient. So it would make sense to provide the monies to the guardians who are supporting them and most likely quarantining with them.

From my end, the stimulus money went right into my basic monthly budget, to help carry us over since work has slowed down a bit. Thankfully, it has begun to pick up as clients are getting more comfortable and beginning to step out again in their businesses. Many had cut back tremendously or gone dark completely over the last month as they waited and made a plan to navigate the new market landscape.

 


18 Comments

  • Reply Cheryl |

    I can only think that young adults will be getting help from their parents and still might be working. I really don’t know what the government thinks. I guess if you can declare them on your taxes you got $500 per kid and the older ones you can’t declare. I am babbling, I’ve been in this house with just my husband for weeks, I might go crazy.

    • Reply Cwaltz |

      As I understand they basically did the same thing with young adults that was done for the Great Recession, dependants 17 and above did not get compensation then either for their guardians. Is there a reason you claim history buff? He has a job so if he filed separately he would have qualified for the $1200.

      As far as this being sufficient to bring the economy back, my guess is no and in some cases I don’t think any amount of money is going to be sufficient for some sectors of the economy. I daresay travel will recover from COVID anytime soon.

      • Reply Hope |

        History Buff was a full time high school student. He just graduated in December, 2019.
        He is now a full time college student and while he has just started working full time, I have been supporting him. (That will change soon.)

  • Reply Shanna |

    I think it is poorly set up for the young adults. As a family, we get nothing and I am fine with that. However, my oldest was declared as a dependent in 2018 since she was still in college but has been on her own since graduating that year. Since she was claimed (although we got ZERO tax break for her since we were over the threshold) she is not eligible even though she has been on her own. My 21 year old has a “well paying” (over the threshold to pay taxes) job and since she is still in college, she also got nothing and we get no perk for claiming her. It really was not well thought out for the young and newly independent.

  • Reply Margann34 |

    I don’t think anyone really thought about this issue beforehand. They needed a quick and easy way to get the money out during a crisis situation. Using tax return info was the best method, although not a perfect method. Most young adults are back with their parents at this time so the overall negative impact is low. During these times, our elected officials must make decisions that are not perfect (no decision is). Each decision will have some negative impact. Young adults took the hit on stimulus checks.

  • Reply Erin75 |

    The stimulus checks are technically an advance of a tax credit for your 2020 tax year. If a young adult is able to file independently for the 2020 tax year and aren’t claimed as a dependent on anyone’s return, they will receive the $1,200 when they file their 2020 tax return next year.

    The child tax credit only going to 16 years old has always been weird and annoying—I assume it was just a function of the amount of money they were willing to spend on that credit.

    • Reply Louise |

      Wow, so it’s not a “gift”? I’m in Australia and our stimulus funds (2x$750 to low income households) are a “gift”, and not taxable. We also have $1500 a fortnight to the unemployed or underemployed; that is taxable income, but still a “gift”.

      “Gift” in inverted commas because it’s federal funds we will all have to share the burden of repaying over the next generation/s.

      • Reply Erin75 |

        Yes, it’s a “gift.” It’s just structured as a tax credit. It is not taxable income.

        Unemployment is taxable.

      • Reply Emily N. |

        It’s kind of confusing, but it is a “gift”. They created an extra tax refund for 2020 that is being given out now instead of when people file their 2020 taxes (in 2021). It’s being given out based on previous tax filings, though, so if someone has a different status in 2020 than they did in 2018 or 2019, they can claim the credit when they file their taxes next year (which is good, but doesn’t really help right now).

  • Reply Nan |

    That’s exactly what my sister told me- nephew was a dependent last year as a college student but now is making
    more money and will be considered independent and will be eligible for the $1200 tax credit when he files his 2020 tax return.

  • Reply Hairy guy |

    I think its very fair. If they aren’t even filing taxes, why would they get a piece of the pie? Can’t have it both ways.

    • Reply Hope |

      My boys do file taxes. And even if it wasn’t sent to them. It could be sent the parents who are supporting them.

      • Reply Hairy guy |

        Maybe they filed taxes but you claimed them as a dependent so they obviously weren’t fully independent. I do think its fair.

    • Reply Emily N. |

      Younger kids aren’t filing taxes, either, and their parents get money for them.

      • Reply Cwaltz |

        Younger kids would not be eligible to receive money back since most don’t have jobs. I think that the 17-24 subset often can and do earn. History Buff has a job. He could file and get the $1200 back. Even Sea Cadet with his small stipend could file. As long as they claim income and qualify they should be able to get the $1200 credit. The kicker is that Hope can’t claim them for this to happen. She has to let them file as individual adults. I get her frustration. I have a 20 and 23 year old who reside with me. However, that is MY choice just as allowing her adult children to reside with her is her choice.. Essentially the government sees them as adults capable of being independant. Mind you the whole process was not completely fair because some kids are not capable of independence after 17 because of disability or older adults incapable of independance and those parents or caretakers don’t get help either. I think the point was though to use existing tax law to get money into hands quickly. You don’t get child tax credit for 17 year olds and you didn’t get it for earlier stuimulus so that was the criteria they went with.

  • Reply Drmaddog |

    I don’t know why this is. I didn’t know it was a situation until reading this post, and I can’t figure out why not even the people who claim young adults as dependents can get $500. I left home at 17 for college and didn’t go back, and knew many others who were in the same boat. My parents pressured me heavily due to their own self-inflicted poverty from excessive debt into allowing them to claim me as a dependent during college, and I didn’t know any better to say no at that age. It would have been a real kick in the shorts to be left out of this sort of assistance when I was couch-surfing during holiday breaks when the dorms were closed.

    The only solace I can offer is that, if these young men support themselves and file independent next year, they should qualify then, depending on income, since it really is just an advance on 2020 tax refunds (looking forward to all the outrage next year when people didn’t understand that and their tax refunds aren’t as large). I am more concerned for disabled adults who are claimed as a dependent who also don’t qualify. A life-long, truly severely disabled person can have insurmountable costs, and its not like they can be suddenly healed, get a job, move out, and get the money in 2020.

  • Reply Lizzie |

    I don’t get it either. Two of my sisters have 17 year olds at home. Both are high school juniors. They are both listed as dependents on their parents’ that returns. Neither one has a job. (They are full time students, and are busy with unpaid internships and school activities.)

So, what do you think ?