The Stimulus Summary
Hey Family!
Pop and I have been working hard to review and dissect all this information, then pull out just the most important and relevant items that matter most to you. So here’s a breakdown as best as we could, keeping in mind that things are changing quickly, with more legislation pending, and that just because this act has passed, the government is still working out the kinks. Here goes…
ONE TIME ASSISTANCE PAYMENTS
Provides a direct payment via direct deposit of up to $1,200 for individuals with income of up to $75,000
Up to $2400 for married couples with income up to $150,000, plus an additional $500 per child
Up to $1200 for those filing “Head of Household” with income up to $112,000
The checks start to phase down after that and disappear completely for people making more than $99,000 and couples making more than $198,000.
Eligibility for checks from the IRS will be based on your 2018 or 2019 tax returns (or whichever you’ve filed last). If you haven’t files taxes in a while (like beyond 2017), they your Social Security retirement or disability and Railroad Retirement Board information will be used to determine your eligibility and payment amounts. You’ll get payment even if you don’t report income or the income you do have isn’t taxable, like your Social Security.
HOW WILL YOU GET YOUR PAYMENT? Most tax payers use direct deposit for their refunds, or have made tax payments online. We’re told the IRS will your most recent bank information. Of course this presents problems; what if you don’t use direct deposit? Or have never made an online payment to the IRS? RIIIIIIGHT! Again, we’re told that they’ll send notices approximately 2-3 weeks after the initial payments have gone out, to verify your information. Remember, many of the kinks have not been worked out yet.
Here’s a neat “CoronaVirus Payment Calculator”.
UNEMPLOYMENT BENEFITS
The temporary “Pandemic Unemployment Assistance” program expands coverage to more workers and is through the end of 2020. This specifically for the self employed (like Realtors), freelancers (like creatives), and ‘gig’ workers out there (like Uber and Lyft drivers), as well as those furloughed… meaning you actually have a job to come back to.
Increase of $600/week in unemployment benefits for 4 months ON TOP OF what you’re normally eligible for from the state.
Makes 13 additional weeks of unemployment available for those who need it. People nearing the maximum number of weeks allowed by their state would get an extension. New filers would also be allowed to collect the benefits for the longer period
Waives (or removes) the normal one-week waiting period before you can apply
Yes… Unemployment benefits are taxable income and they generally count as income when determining eligibility for public assistance programs
FAMILY MEDICAL LEAVE ACT (‘FMLA’)
The standard FMLA benefit, which covers those who have been on the job for at least 30 days, and provides up to 12 weeks of job-protected leave. It’s been expanded and can be used for any of the following reasons:
To adhere to a requirement or recommendation to quarantine due to exposure to or symptoms of coronavirus
To care for an at-risk family member who is adhering to a requirement or recommendation to quarantine due to exposure to or symptoms of coronavirus and
To care for a child of an employee if the child’s school or place of care has been closed, or the child-care provider is unavailable, due to a coronavirus.
After the two weeks of paid leave, employees will receive pay that will be no less than two thirds of their usual pay. And sorry, no… you’re not covered for staying home because you’re trying to avoid being exposed.
STUDENT LOANS:
Interest on all federally held student loans (Perkins, FFEL, etc) will not accrue as of March 13, 2020.
If your loan is in forbearance, it will not accrue interest.
If your loan is in default and your tax refund, Social Security, or Federal Disability was taken (since January 27, 2020), it will be returned to you. Also, the same applies if your wages are being garnished. Further, no collection activity will not (or should not) be happening during this time. Click HERE for more specific information and contact resources.
Employers can provide up to $5,250 in tax-free student loan repayment benefits. That means an employer could contribute to loan payments and workers wouldn't have to include that money as income.
MORTGAGE WAIVERS (California Only, right now)
Homeowners in California who pay mortgages to JPMorgan Chase, Wells Fargo, Citi, or US Bank will receive a 90-day waiver on mortgage payments. About 200 of the state's charter banks and credit unions will also issue waivers for 90 days, but Good ole Bank of America would only agree to 30 days. For those of you NOT in California.. Check with your lender about a forbearance. Many banks are sympathetic right now, and many government leaders are leaning on them to come up with some kind of program. Check with your lender directly for the particulars; and see my post about whether it’s even a good idea or not.
ARE YOU A CREATIVE OR KNOW ONE? There are several grants and funding sources for those Creatives (musicians, visual and creative artists). Click here for a list.
Whew! Ok Fam, I really hope this info is helpful, and I’ll be updating as they come in. Pop and I pray that you all stay well and safe!
~ Ang 💜
