Source: United States House of Representatives – Congresswoman Cindy Axne (IA-03)
December 28, 2020
The CASH Act would increase Economic Impact Payments in the bipartisan COVID-19 relief package to $2,000 for individual adults, expand definition of dependents
Today, Rep. Cindy Axne (IA-03) joined a bipartisan majority of the U.S. House of Representatives to pass legislation that would increase the second round of Economic Impact Payments (EIPs) to $2,000 for individual adults and fix the definition of dependents in both rounds of payments.
“After 10 months of the COVID-19 pandemic, every Iowa family and community has felt the effects of this public health crisis and the economic turmoil that came with it. Since March, I’ve worked to craft and pass relief to help Iowa – but sadly the bipartisan spirit that enabled Congress to act quickly in March has faded, with arbitrary caps preventing more substantial relief and delaying it unnecessarily,” said Rep. Axne. “$600 won’t cover a month’s rent and necessities in Iowa – but my Republican colleagues in the Senate have insisted that they will approve no more than that to put money in Iowans’ pockets and hold off economic ruin. I hope that this bipartisan vote in the House today to raise payments to $2,000, an amount supported by President Trump, can change their minds and enable us to give more help to those who are struggling.”
The Caring for Americans with Supplemental Help (CASH) Act of 2020 amends the coronavirus (COVID-19) relief deal approved by Congress last week to set new amounts for EIPs at $2,000 for individuals, $4,000 for joint filing couples, and $2,000 for dependents.
The CASH Act also changes the definition of a dependent to include children 17 or older who are still claimed as dependents on their parents’ tax returns – as well as adult dependents that still rely on their relatives’ care.
This change would apply to both rounds of EIPs, entitling families who missed a dependent payment in the first round of EIPs to apply for these credits on their 2020 tax return.
“The current definition of dependents doesn’t reflect the reality of need in Iowa. I’ve heard from Iowans with older dependents that were under just as much strain – if not more – as families with younger children,” said Rep. Axne. “I fought to see this definition changed in any COVID-19 relief legislation, and I’m proud to vote for a bill today that will make this fix and allow these families to access the payments they were entitled to last spring.”
The COVID-19 relief deal signed by President Trump last night sets the amounts for the second round of EIPs at $600 for individuals and dependents, and $1,200 for couples.
The EIP is calculated using a person’s 2019 or 2018 tax return. Those who made more than $75,000 as an individual or $150,000 as a couple on their most recent tax return will see their EIP phased down relative to that income.