CARES Act and Covid-19

CARES Act and Covid-19

The stimulus bill (aka CARES Act) passed last week and offers many Americans relief from economic hardships.  Here is a summary of how clients of Financial Futures may benefit:

  1. One time payment of $1200 per person if your adjusted gross income is under $75K for single or $150K for married.  Extra $500 per dependent child.  Based on 2018 or 2019 tax return.  Check here for more info as available from the IRS:
    https://www.irs.gov/coronavirus
  2. Unemployment benefits extended to independent contractors, self-employed and part-time employees and increased up to an additional $600/week more than what your state normally provides.  Click here to file with the following states:
  3. Required minimum distributions for 2020 suspended. If you took your RMD for 2020 already and want to discuss the potential benefits of returning the RMD to your IRA, please book a call with us (link below).
  4. 10% early withdrawal penalty from retirement accounts for Coronavirus related expenses waived. This usually applies to people under age 59 1/2.  Note that income taxes are still due on any withdrawals.
  5. Deferral of federal student loan payments until 9/30/2020.
  6. Small business loans (1-500 employees) that may be partially forgiven if used for payroll, rent, mortgage payments and utilities.  All small business owners should be reviewing these loans. Note that loan applications are not yet available on the SBA website. Click here for more info:

Click here for a good overall summary CARES Act by Forbes.

Click below to book a call with Jorie or Eric.

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