April 3, 2020
Another law related to the Corona Virus likely will directly affect most of our members. It is called Corona Virus Aid, Relief and Economic Security Act. This is a two trillion-dollar bipartisan agreement that addresses several different facets of the economy. We are going to focus on the portions of this agreement that will most directly impact our members.
PAYMENT BENEFITS TO INDIVIDUALS
There will be a onetime $1200 payment to individuals whose adjusted gross income is $75,000 dollars or less. Married couples with no children earning $150,000 or less will receive a total of $2400. Payments are scaled down for individuals who make between $75000 and $99000 and couples who together earn between $150,000 and $198,000. Individuals who make over $99,000 and couples who make over $198,000 are not eligible for payments under this plan.
Children in your household who qualified for a child tax credit in 2019 will also make you eligible to receive $500 per child.
The government will use your 2019 income from your tax documents in order to determine income. If you have not filed your taxes this year, the IRS will use your 2018 income from your tax documents. If the IRS has your bank account information, they will direct deposit your payment into that bank account. These payments are expected to go out in the next three weeks. If the IRS does not have bank account information on file, the check will be sent to your mailing address. We suggest if you have not filed your 2019 tax returns and your bank account or mailing address has changed that you try to file this years taxes as soon as possible so the IRS has your correct information to expedite your access to stimulus funds.
Below is a calculator that will provide an estimate as to what you will receive as part of this plan. https://www.kiplinger.com/tool/taxes/T023-S001-stimulus-check-calculator-2020/index.php
Another provision that may impact our members is federal student loan payments. The interest on Federal Student Loans has been suspended from accruing for 6 months. You also have the option to stop paying federal student loans through September 30, 2020. Nonpayment during this time frame will not result in any late fees or penalties. Nonpayment during this time will also not negatively impact your payment credits for student loan forgiveness programs. (The above applies only to Federal direct student loans and federally held FFELs). ***If you are not sure about who holds your student loans, please make sure you contact your service provider rather than making assumptions.***
This relief act has many provisions that may assist you during this difficult time. We highly suggest you take the time to read through the law, to see if any other programs or incentives would help you or your family. If you have questions about the programs, DTU is here to help, please feel free to reach out to DTU attorneys Stephanie Schaap at Dtustephanie@aol.com or Teddy Rivera at Dtuteddy@aol.com.