Economic Impact Payments
The recent stimulus bill passed by the Biden administration paved the way for new Economic Impact Payments, also known as stimulus checks. The IRS will begin distributing these checks in mid-March, 2021.
- • Adults and children earning less than $75,000 per year will receive $1,400 checks.
- • Those making between $75,000 and $80,000 will get less, and those making more than $80,000 will not receive a check.
- • People who receive federal benefits through programs like Social Security the VA will receive their third stimulus the same way they receive their benefits. Those payments are set to distribute in early April.
- • Anyone that needs to claim payments that they are owed from the first and second stimulus needs to claim the Recovery Rebate Credit when filing their 2020 Income Taxes.
Check the status of your payment here: https://www.irs.gov/coronavirus/get-my-payment
Free Consumer Credit Report Access
- • The three major credit bureaus in the U.S. (Experian, Equifax, TransUnion) are providing consumers with free weekly credit reports through April 20, 2022. You can download your free reports each week through annualcreditreport.com
Federal Student Loan Relief
- • Federal student loan forbearance has been extended to September 30, 2021.
- • Interest rates on federal loans are also frozen, so any payments made during this time will be wholly used to pay off the principal debt.
- • The March 2021 relief bill stipulated that student loans forgiven between December 31, 2020, and January 1, 2026, will not be taxed.
- • The Federal Housing Authority (FHA) has been extended the foreclosure moratorium through June 30, 2021. Homeowners with FHA loans cannot face foreclosure due to nonpayment through this date.
- • The FHA has also extended the time that homeowners can request their initial 180 days of forbearance under the CARES Act through June 30, 2021. That is the deadline for homeowners to request forbearance, although the forbearance period itself lasts six months and an additional six months can be requested if the homeowner’s hardship continues.
Eviction Protection for Renters
- • The Centers for Disease Control have issued a moratorium on all evictions until June 30, 2021. In an effort to help stem the spread of COVID-19, no renter can be evicted from his or her current residence due to nonpayment.
- • For renters that are behind on payments and need help catching up, nearly $50 billion in federal and state funds are available for rental assistance. These funds are intended to provide grants to renters who would be facing eviction due to nonpayment. Contact your KOFE coaches or call 211 in your area to find relief resources that may be available to you.
- • Many taxpayers will not have to pay taxes on up to $10,200 of unemployment assistance income from 2020.
- • The Child Tax Credit will be higher for 2021 tax returns. Instead of $2,000 per child, the new credit will be $3,600 for newborns to five-year-old children and $3,000 for those between ages six and 17.
- • The IRS has extended the filing deadline May 17, 2021
- • Part of the December 2020 relief bill includes a provision against surprise medical billing. Patients should ideally receive a cost estimate that’s as accurate as possible three days before the procedure.
Small Business Relief
- • Some small businesses could be eligible for a second PPP loan. The loans will be offered until March 31, 2021.
- • (Economic Injury Disaster Loan) EIDL grants got a $15 billion boost from the March 2021 bill.