EVERYTHING YOU NEED TO KNOW ABOUT THE STIMULUS PLAN

EVERYTHING YOU NEED TO KNOW ABOUT THE STIMULUS PLAN

The Senate unanimously passed a $2 trillion economic rescue plan that’ll assist millions of American households affected by coronavirus. It includes: a stimulus payment, bigger unemployment coverage, student loan assistance, and more.

Most adults will get $1,200 as a stimulus payment, and $500 for every qualifying child age 16 and under. Single adults with Social Security numbers who are United State residents with a gross income of $75,000 or less will get the full payment. Married couples with no children earning $150,000 or less would receive a total of $2,400. And taxpayers filing as head of household will get the full payment if they earned $112,500 or less.

Things to know about the stimulus payment:

  • It will be only one payment, future bills passing could call for additional payments.

  • You do not need to apply anywhere to receive a payment. The IRS already has your direct deposit information and gross income from your 2019 tax return.

  • If you haven’t filed yet for 2019, they will take the information from your 2018 tax return.

  • If you didn’t file 2018, you can use a 2019 Social Security statement showing your income to see what an employer reported to the IRS.

The bill includes more workers than usually eligible for unemployment benefits; including self-employed people and part-time workers. Those who are unemployed, are partly unemployed or cannot work for a variety of coronavirus related reasons, are more likely to receive benefits. Under the plan, eligible workers would get an extra $600 per week on top of their state benefit, as well as longer terms to receive benefits.

Things to know about unemployment benefits:

  • How much you receive depends on your state.

  • Gig workers, freelancers, independent contractors and self-employed people would be eligible.

  • Benefit amounts would be calculated based on previous income, using a formula from the Disaster Unemployment Assistance program. (https://www.fema.gov/media-library/assets/documents/24418)

  • Self-employed workers would also be eligible for the additional $600 weekly benefit.

  • Part-time workers benefits amount and how long benefits will last depend on your state, also being eligible for the additional $600 weekly benefit.

  • If you are a parent and rely on a school, day care or another child care facility, elderly parent parent or another household member so you can work,  you can be eligible.

The US Department of Education has granted a payment waiver of at least 60 days to many, but isn’t necessarily automatic. You have to call your loan servicer to request a waiver and to make sure that your loan is eligible. If you are already more than 31 days ;late, your loan servicer will suspend your payments automatically. Your servicer will not charge interest during this time, and the waiver is not supposed to hurt your credit. Using the waiver to pause federal student loan payments may not be the best move for people in finical distress. It may be better to enter an income-driven repayment program. (https://studentaid.gov/manage-loans/repayment/plans/income-driven)

Things to know about student loans:

  • The waiver does not apply to private lenders, like Sallie Mae – who is offering suspension of payment for up to three months, with no damage to your credit.

  • Low income borrowers enrolled in an income-driven repayment program often end up with no monthly payments for as long as your income stays low.

-Toon

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