Washington’s $2 trillion coronavirus relief package will put $1,200 directly into the hands of nearly every American, including United States Virgin Islanders, through income tax rebates, with the money arriving in a matter of weeks.
Washington’s $2 trillion coronavirus relief package will put $1,200 directly into the hands of nearly every American, including Virgin Islanders, through income tax rebates, with the money arriving in a matter of weeks.
The amount of those direct payments to individuals is tied to family size and income. Under the stimulus plan signed by President Donald Trump on Friday, most U.S. adults are to receive $1,200 coronavirus aid payment.
Married Couples get double
For married couples filing taxes jointly, the payment is $2,400. Payments phase out for individuals with adjusted gross incomes over $75,000 ($150,000 for couples). Anyone making over $99,000 would not get a payment ($198,000 for couples).
Small and large businesses and local government can also expect federal assistance help staying afloat amid the COVID-19 outbreak, said Congresswoman Stacey Plaskett on Friday.
Additionally, there is $500 allotment per child under 17, Ms Plaskett said, adding that arrangements will be made for “non-filers” people who did not file federal or territory income taxes last year. “There is no earned income requirement for the rebate, but non-filers may need to take additional steps.”
Plaskett: VI Government to Manage Coronavirus Relief Payments to Individuals
For tax purposes, the territory operates under a mirror tax system - the “mirror code” — whereby USVI taxpayers pay taxes to the Bureau of Internal Revenue (BIR), just as stateside taxpayers file returns to the U.S. Internal Revenue Service.
Under the “mirror code,” the coronavirus relief payments will be made by the Government of the Virgin Islands, the Congresswoman said. The territory will be reimbursed for those payments by the U.S. treasury, she said.
Estimates are that 90 per cent of Americans will receive a direct payment, based on the formula set up by Congress. The money is expected to go out by direct deposit into individual bank accounts or paper checks delivered by mail.
It was unknown on Friday how much the Government of the Virgin Islands will have to expend upfront to make direct payments to residents. It also was unclear whether the territory has made provisions for the BIR to disburse the relief funds locally.