Cheat Sheet of Resources for COVID-19
Updated March 29, 2020
We are living through uncertain and unprecedented times. Many of us have been or will soon be impacted financially by the ongoing crisis. We want to be here to support you with resources and all the programs you can take advantage of.
Here is the update on resources for COVID-19:
Tax Filing Deadline Extended to July 15th
The Internal Revenue Service (IRS) has extended the Federal Tax Filing Deadline for Individuals and Corporations to July 15th.
However, those taxpayers who may have tax refunds can still file now to get their refund check.
How will the $2 Trillion Stimulus Plan (CARES Act) will impact your student loans?
- 0% interest for 6 months, until Sept 30, 2020 (backdated to March 13, 2020), this happens automatically.
- Payments are suspended for 6 months until Sept 30, 2020, this happens automatically.
- The 6 mo of suspended payments count towards loan forgiveness programs, including Public Service Loan Forgiveness (PSLF) and Income Driven Forgiveness (PAYE, REPAYE, IBR).
- Employers will receive a tax break when they contribute to their employees’ student loans.
- Borrowers in default will have their 6 months of suspended payments count towards the nine months needed for loan rehabilitation.
- No collection, wage garnishment, or seizure of tax refunds will happen (backdated to March 13, 2020)
This applies to federal loans only. For more information visit the CFPB: https://www.consumerfinance.gov/about-us/blog/what-you-need-to-know-about-student-loans-and-coronavirus-pandemic/
The $1,200 Direct Checks, Explained
How much will the payments be?
Individuals who earn $75,000 in adjusted gross income or less would get direct payments $1,200 each. For every qualifying child age 16 or under, the payment will be an additional $500.
It phases out entirely at $99,000 for singles and $198,000 for couples without children.
Source: CNN and NYTimes
How will you get it?
Qualifying income levels will be based on 2019 federal tax returns, if already filed, and otherwise on 2018 returns. They will use the bank information and mailing address of your 2018 or 2019 returns for direct deposit if you e-filed, otherwise you will receive a check.
Source: NBC News
When will you get it?
President Trump and Treasury Secretary Mnuchin are still pushing to get the direct payments issued by April 6. Many experts think it will be most likely 2-3 months.
Do I have to pay income taxes on the amount of my payment?
Where can I get more information?
Keep checking irs.gov/coronavirus
Here is a helpful graphic from the Tax Foundation to explain how this works for single, married and dependents:
Source: Tax Foundation
Finally, our free app can help you organize your student debt during this time, sign up here.