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COVID-19, the CARES Act and what it means for you

We sincerely hope that this finds you healthy and safe. Information is coming at us from all sorts of directions and it is an honor to be one of the sources to help you try to process everything that is going on.  We aren’t experts at COVID-19 but want to keep giving you valuable information with regards to your money and COVID-19.  Thanks for being Uncommon and making a difference in these trying times.

Last week we saw a huge rally in the market but we believe that there is still a lot of “headwind” when it comes to getting back to a normal state.  We are watching the markets very closely and will continue to do so.

In more recent news, as I am sure you are aware of the legislation that our President signed as a response to COVID-19.  This bill is called the Coronavirus Aid, Relief, and Economic Security Act (CARES ACT). The $2.2 trillion stimulus measure is the largest federal response in history aimed at providing relief to the American people and businesses in response to the coronavirus (COVID-19) outbreak. The measure provides direct financial help to Americans; immediate assistance for hospitals, healthcare first responders, and patients; support for small businesses; and assistance for distressed industries.

America also surpassed 100,000 positive cases of COVID-19.

We are doing our best to try to unpack this unprecedented legislation. The bill was over 800 pages long and counting.  It addresses so many different facets that we will try to summarize some of the highlights and link to places we found to be informative on the matter. Next week we should have a clearer breakdown of the bill.

Rebate Checks

“Overall, the package is pretty straightforward surrounding the rebate checks: Americans who make no more than $75,000 will receive $1,200, and double that if they are married and making $150,000 or less. Payments start to decrease thereafter, and those who earn $99,000 as a single individual or $198,000 as a married couple will not receive any money. Heads of households have a limit of $146,500. Individuals with children will receive $500 for every child.”

Small Business Relief

Small Business Owners will have access to favorable loans based on 2019 payroll numbers that potentially do not have to be repaid and are treated as a grant with only the interest needing to be repaid.

Relief for farmers

The stimulus provides $9.5 billion in emergency aid for the agriculture industry and replenishes $14 billion in spending authority to the Agriculture Department’s Commodity Credit Corp., a Depression-era financial institution set up to stabilize the farm economy — the same USDA agency sending trade bailout payments to farmers. Producers ranging from dairy farmers and cattle ranchers to fresh fruit and vegetable growers are eligible.

Taxes

Taxpayers don’t have to file additional forms or qualify in any way to get the extension. It’s automatic. But if you want your refund, you must file your taxes first. If you need more time beyond the July 15 deadline, you can request an additional three-month extension until Oct. 15. Normally, an extension would give you six months after the April 15 deadline to file your taxes.

Healthcare

The bill helps cover tests for COVID-19 and puts a lot of provisions and safeguards in place to help families and the healthcare system fight the growth of this pandemic. For a list of those provisions, this site does a great job summarizing it.

Student Loan Relief

The final package creates a new tax benefit for student loan borrowers whose employers help them pay off their debt. Under the bill, a company could pay up to $5,250 of an employee’s student loan payments each year on a tax-free basis.

Keep tuning in here for updates on all things related to COVID-19 and your money.