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发帖数: 4796 | 1 It's Not Just a $1,200 Check. Here Are All the Other Ways You Can Benefit
From the Coronavirus Stimulus Package
The unprecedented $2 trillion coronavirus relief package Congress signed by
President Trump on Friday, March 27, has a lot to unpack in it. In fact,
Congress is still hammering out some of the fine print. The stimulus
package, officially named the Coronavirus Aid, Relief and Economic Security
(CARES) Act, includes funding to prop up industries like airlines, which
have been hit hard by travel grinding to a near-halt, and to shore up
financial lending markets. But the act also has a number of provisions
designed to help out ordinary Americans and small business owners struggling
with their finances as the COVID-19 virus upends normal life as we know it.
Here are the key parts of the CARES Act you’ll want to keep on your radar
in the coming weeks and months — because you’re bound to benefit.
Receive a $1,200 Stimulus Check
The most talked-about part of the $2 trillion CARES Act is its provision to
issue cash payments to millions of Americans. Taxpayers earning up to $75,
000 a year will get $1,200 for each adult ($2,400 for married couples who
file jointly and earn up to $150,000), plus $500 for each child under the
age of 17. The payment amount has an income-based phase-out; if you earn $99
,000 or more — or if a couple earns $198,000 or more — with no dependents,
the payment drops to $0.
Most stimulus checks will be sent via direct deposit, and officials have
said they will start being issued in late April. In order to get the
stimulus check, you need to have filed tax returns for 2019 or 2018, or draw
either Social Security or veterans’ benefits.
File for Unemployment and Get an Extra $600 a Week
In addition to bumping up unemployment benefits by as much as $600 a week (
depending on your state and how much you earn), the stimulus package
includes unemployment insurance provisions for part-time and gig workers, as
well as people who are self-employed. What’s more, those eligible can
receive unemployment for up to an additional 13 weeks thanks to coronavirus
relief measures. To file for unemployment, go directly to your state’s
program and follow its guidelines.
Suspend Your Mortgage Payment
If you have a federally-backed mortgage and you’ve lost income due to the
COVID-19 outbreak, you can get a 60-day forbearance on your mortgage
payments, with the option to extend that for up to four additional 30-day
periods. To do so, you must contact your lender and explain your situation;
your lender can’t charge you penalties or fees during this time. The
legislation also includes a 60-day moratorium against starting foreclosure
proceedings against borrowers with federally backed mortgages.
Also, tenants living in buildings whose owners have federally-backed
mortgages cannot be evicted for failing to pay rent for 120 days, and can’t
be charged penalties or fees for nonpayment.
Catch a Break on Student Loan Interest
The CARES Act builds on previously announced student loan relief that would
have given borrowers with federal student loans a 60-day forbearance and 0%
interest accrual for that period. Now, the Department of Education says
forbearance will last through the end of September, and interest is being
held at 0% for that time period.
The one caveat is that this doesn’t apply to private student loans, only to
loans held by the federal government — that is, loans that list the U.S.
Department of Education as the lender. If you’re not sure if your loan
qualifies, you can go to http://www.studentaid.gov to find out.
Get a Small Business Loan
The bulk of the $367 billion the stimulus package allocates for small
business assistance is a $350 billion “payroll protection program.” It
aims to give small business owners a cash infusion to cover employee
compensation — including salaries or hourly wages along with benefits —
for up to two and a half months, along with other overhead expenses like
mortgage payments and utility bills. Small businesses contribute most of the
country’s economic activity, and lawmakers said this aid could potentially
help more than 30 million small businesses stay afloat.
These funds are structured as forgivable loans with an interest rate cap of
4% and available to businesses with 500 or fewer employees. The maximum
amount is $10 million, which will be forgiven if the business keeps its
workers on the payroll rather than furloughing them or firing them. Small
businesses can apply for emergency grants of up to $10,000 after applying
for a loan to help ease an immediate cash crunch.
You can get more details from the Small Business Administration website, and
apply for an SBA disaster loan here (warning: the estimated time for
completing an application is over two hours). Officials say the program
should be operational starting on Friday, April 3, and that small business
owners will be able to apply for loans and be approved by banks on the same
day. The U.S. Senate Committee on Small Business & Entrepreneurship and the
U.S. Chamber of Commerce also have resource guides to help small business
owners understand their options and the ramifications.
Take Advantage of a New Tax Deadline
The CARES Act bumped the deadline for filing and paying federal income tax
on your 2019 income from April 15 to July 15. If you’re anticipating a
refund (which is the case for most taxpayers), it’s still a good idea to go
ahead and file by April 15, so you can get that money faster.
On the other hand, if you know you’ll owe Uncle Sam, you get an extra three
months to hang onto that money and use it for more pressing needs. (FYI, if
you file for an extension, it will only give you until October 15, or six
months from the regular filing deadline, as in any normal year.)
Make Penalty-Free 401(k) and IRA Withdrawals
While it could be a lifeline if you’re strapped for cash — and you’re
either ineligible for or have already tapped the other assistance options
listed here — withdrawing money from your 401(k) shouldn’t be your first
choice. Why? For one thing, withdrawing that money now (when the stocks are
low and highly volatile) could make it hard to play catch-up later once the
market recovers.
Delay the Mandatory IRA Distribution
Take an Extra Tax Deduction for Charitable Donations
The new legislation lets you deduct an additional $300 to donations made to
a qualified 501(c)3 nonprofit organization. This move to encourage people to
give back is an above-the-line deduction, meaning that even people who don
’t itemize and take the standard deduction when filing taxes will be able
to take advantage of it. |
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