How can the stimulus package help me?
Last Wednesday the U.S. Government approved the $2 TRILLION Coronavirus Aid, Relief and Economic Security (CARES) Act which will help millions of people in this critical time. Perhaps even you.
This sweeping legislation is unprecedented in the history of our nation and provides significant economic assistance to address the impact of COVID-19. The CARES Act is over 800 pages long, but here are some of the economic provisions most relevant for individuals.
Direct Federal Stimulus Payments
Direct payments of up to $1,200 per individual and $500 per child are set to be released in April. The full amount is available to any individual making less than $75,000 ($150,000 for married couples) and will phase-out completely for those individuals who make $99,000 ($198,000 for married couples).
If you’re wondering how much you qualify for you can use a stimulus check calculator.
Annual Income Tax Deadline Extension
The White House announced that the federal income tax deadline has been extended 90 days until July 15th, 2020. Which means not only do you not have to file your tax return until then, but if you owe, you also don’t have to pay anything until then either.
For more information check the IRS website.
Unemployment Insurance Benefits
The maximum benefit will increase by $600 per week for up to 4 months. These benefits are not only available to full-time employees affected by the crisis, but also part-time workers, the self-employed, and those working in the gig economy (think Uber, Lyft, etc.).
You need to apply directly with state, find more information below:
➾ To apply for IA Unemployment Insurance - https://bit.ly/3dKDm9W
➾ FAQ on Unemployment Insurance + Coronavirus - https://bit.ly/2X4CJlT
Federal Student Loan Deferment
The White House previously announced that interest rates on all federal student loans would drop to 0% for 6 months; however, that did not mean you didn’t have to pay your full loan amount - it just meant more of it went to principal. Now, they are also allowing individuals to defer payments altogether up to 6 months without any interest accruing or penalties. To get more info, click here.
Tax-Free Retirement Funds Withdrawal
IRA owners adversely affected by COVID-19 will be eligible to take distributions from their IRAs tax/penalty-free if it is repaid to your IRA account within the 3 years following your distribution date.