In a new YouTube video, I respond to a lot of myths and misunderstanding people have about the Coronavirus CARES Act IRS Stimulus Rebate/Refund Checks,
To react to the dramatic and devastating economic impact the novel coronavirus COVID-19 is having on the United States economy, the government recently created a new law called the CARES Act which, among other things, provides emergency payments, loans and grants to small businesses and individuals.
According to recent reports, the relief checks will be deposited into people’s bank accounts starting today, April 9th.
However, there is a lot of misinformation about the $2T Economic Bill, called the Cornavirus Aid, Relief and Economic Security Act, especially about the individual rebates that the Internal Revenue Service and the Social Security Administration have been tasked with getting into citizens’ hands.
Common remarks and questions I’ve seen made about the rebate/refund check I’ve seen include:
“Man, the government isnt’ sending us any money! ”
“How can they afford to pay us when we got a $16T deficit?
“I heard it’s an advance on your tax refund for next year!”
“Nothing it Free! Of course, we’re gonna have to pay it back!”
Although the $1200 refund checks are technically an advance on a 2020 tax credit, that money will NOT be deducted from your tax refund next year and in this video I explain why in my recent YouTube explainer video.
But first, I go through some basics of federal US Civics 101 and specifically go over, generally, how the US Gov gets revenue, what it does with that money, and I give a very brief walk through on how tax credits work to help people realize why it will not be deducted from future refunds.
It ends with a discussion about the fact that 17 year olds and young adult and college kids who are still supported by their parents are excluded from funding and what I think we should do to change that.