5 Government Actions and the Impact on You and Your FamilySubmitted by Reby Advisors | Certified Financial Planners | Danbury, CT on March 27th, 2020
By George Koeltl, CFP®, March 27, 2020
With the coronavirus impacting not only the health but the finances of many Americans, the federal government and state governments have taken significant action with the aim of reducing short-term hardship and preventing permanent damage to the economy. This includes a tax extension and a $2 trillion bill that awaits passage by the House of Representatives.
Here are five ways you may be impacted, including links to additional resources:
Tax Deadline Extended
With business closures and massive unemployment claims across the United States, meeting the April 15th tax deadline would have caused significant cashflow issues for many Americans who owed taxes on their 2019 returns. The Treasury Department has extended the deadline to July 15th.
However, it’s still advisable to calculate your taxes owed or potential refund now. If you overpaid in 2019, you’ll get your refund earlier. If you owe, you will be able to plan and budget for the new deadline.
Here’s the link to the IRS notification:
Unemployment Benefits Set to Increase
Americans filed a record 3.3 million unemployment claims the week of March 16, five times greater than the highest number of weekly unemployment claims during the Great Recession. The stimulus bill passed by the Senate and expected to be passed by the House of Representatives includes a $600 weekly increase in unemployment benefits.
The average weekly unemployment check is less than $400, so an increase by $600 is a significant boost. Many unemployed Americans will see their benefits increase by more than 100%.
To file for unemployment in Connecticut, follow these steps from the Connecticut Department of Labor: CLICK HERE
To learn more about the temporary increase in unemployment benefits, go to: https://www.cnbc.com/2020/03/26/coronavirus-relief-bill-what-to-know-about-unemployment-benefits.html
The stimulus package also includes direct cash assistance to most American households. Individuals will receive up to $1,200 and $500 for each dependent child; married couples get up to $2,400 and $500 per dependent child. Higher income individuals and married couples will not receive stimulus checks if they do not have dependent children. Whether you qualify depends on your 2019 or 2018 adjusted gross income.
According to CBS News:
- Individual taxpayers will get $1,200 each if their adjusted gross income (AGI) is less than $75,000.
- Individual taxpayers with AGIs above $75,000 will receive smaller checks, with a $5 reduction for every $100 in income above $75,000.
- Married couples will receive $2,400 if they earn less than $150,000 in adjusted gross income.
- Head of households will receive $1,200 if they earn less than $112,500 in AGI.
- Payments will be reduced by $5 for every $100 in income above those AGI limits.
- Housesolds will receive up to $500 per dependent child.
To learn more, visit: https://www.cbsnews.com/news/stimulus-checks-coronavirus-relief-package-how-much-when/
Small Business Loans and Grants
Assuming passage of the stimulus bill, businesses with fewer than 500 employees will be eligible to receive loans. The loans will be forgivable if they meet certain criteria, such as using the cash to pay employees or rehire laid off workers.
Learn more details about the program, including how to apply for a small business loan under the coronavirus stimulus bill here:
Connecticut Small Business & Non-Profit Emergency Loans
The state of Connecticut is now offering zero interest, 12-month loans to companies and non-profit organizations with fewer than 100 employees. Organizations may qualify for loans up to the lesser of $75,000 or three months of operating expenses.
As additional details or nuances are available, we will keep you informed.
Contact Reby Advisors for Planning or Investment Advice
If you would like investment advice or need a financial plan for these challenging economic times, please do not hesitate to contact Reby Advisors.