Most people in Paterson will receive the maximum benefit from the historic Covid-19 stimulus package, according to an analysis by New York-based personal finance firm SmartAsset.
Part of the package includes $250 billion in direct payments to individuals and households. 89-percent of Paterson households will receive the full benefit from the package. Nearly 96-percent of Paterson households will receive a check from the federal government to help weather through the pandemic.
“Based on income data from the Census Bureau, we estimate that roughly 43,559 of the 48,926 total households in Paterson will receive a check worth the full amount ($1,200 for individuals or $2,400 for married couples),” said Mark LoCastro of SmartAsset.
The percentage of Paterson household getting the full benefit is the 20th highest in the United States. The other New Jersey municipality on the list of 20 cities whose households are expected to get the full benefit is Newark at 13th place.
“More residents will receive a COVID-19 stimulus check worth the full benefit amount in cities with higher concentrations of lower-earning individuals and families,” said LoCastro. “The full stimulus check benefit of $1,200 for individuals would go to those with an adjusted gross income (AGI) of up to $75,000 and the full benefit of $2,400 for married couples would go to those earning a combined amount of less than $150,000.”
Paterson is among the poorest cities in New Jersey. Household income is just $39,282, half New Jersey’s median of $80,000. Households receiving the full benefits could mean a boost for the local economy.
“For individuals, the full benefit of $1,200 would be sent to those with an adjusted gross income (AGI) of up to $75,000 and a reduced benefit would be sent to individuals earning up to $99,000, at which point it phases out completely. The check amount decreases by $5 for every $100 above the income threshold of $75,000,” said LoCastro.
LoCastro said those with children under 17 years of age receive an extra $500 per child. He said the child amount is also subject to the phase out.
Treasury secretary Steven Mnuchin on Wednesday told lawmakers direct deposits to Americans will begin next week.
“This legislation provides life-saving measures of support to the millions of Americans and countless small businesses laid low by COVID-19,” said congressman Bill Pascrell on Mar. 27. “The number one thing that matters is putting aid directly into Americans’ hands so we can weather this storm.”
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