Federal aid in connection with the coronavirus: a complete guide to questions and answers

Signed on March 27, the President of the United States a bill to aid in the amount of 2.2 trillion dollars send money directly to Americans, significantly expanding the coverage of unemployment and make several other changes in the life of the United States, writes New York Times.

Федеральная помощь в связи с коронавирусом: полный гид в вопросах и ответах

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President trump signed a bipartisan plan for economic aid in the amount of 2.2 trillion dollars to offer aid to tens of millions of American families affected by the pandemic coronavirus. Its components include benefits for individuals, the extension of coverage for unemployment, changes to student loans, various rules for retirement accounts and more.

Here are answers to common questions about what will change after the law came into force.

Payments to individuals

How large are the payments?

Most adults will receive 1200 dollars, some less. For each candidate under the requirements of the child under the age of 16 years fee will be an additional $ 500.

How many payments are required?

Only one. Adopted further legislation may imply additional charges.

How to know whether I will get the full amount?

It depends on your income. Single adults with social security numbers who have adjusted gross income of $ 75,000 or less will receive the full amount. Married couples without children who earn $ 150,000 or less will receive a total of $ 2,400. And taxpayers submitting the data as the head of the family, will receive a full payout if they earned 112 $ 500 or less.

Above these figures the payment is reduced until, until it fully stops on the figure for single people earning 99 000 dollars, or for married people who do not have children and earn 198 000 dollars. According to the Finance Committee of the Senate, family with two children will no longer be entitled to any payments if her income exceeded $ 218 000.

You will not be able to receive payment if someone dismisses you as a dependent, even if you are an adult. In any family and in most cases, each must have a valid social security number to be eligible for payment. Exception — the military.

Adjusted gross income you can find in the Declaration line 8b of Federal 1040 tax in 2019.

More detailed calculations we have published below.

Will I get any College?

No, if someone points them as dependents. As a rule, students under the age of 24 are dependent in the eyes of the tax authorities, if the parent pays at least half of their expenses.

The year in which income need to look?

2019. If you have not prepared your tax return, you can use the data for 2018. If you have not filed, you can use help on social security for 2019 that will show your income to know what your employer reported to the IRS.

What if my income does not give a right to payment, but I expect I will have such a right because the loss of income in 2020? Will I receive payment?

The new plan does not help people in such current conditions, but you can get help as soon as you submit your taxes 2020: payment is technically an advance on a tax credit that is available for the entire year. So it will depend on how much you earn.

There are many other provisions in the law. You can apply for unemployment benefits or one of the new loans for small business owners or individual entrepreneurs.

Do I need to apply to receive payment?

No. If the internal revenue Service already has information about your Bank account, it will transfer you the money via direct Deposit on the basis of the latest data on personal income tax, which she already has.

When you receive the payment?

The head of the Treasury Steven Mnuchin said that most people are expected to get payments within three weeks.

If my payment is not coming soon, how can I be sure that it sent correctly?

According to the law, you will receive a paper notice in the mail not later than few weeks after payment. This notice will contain information about the form in which payment was made and where he did. If you can not find the payment until you will need to contact the IRS using the information in the notification.

What if I haven’t filed tax returns? Will this affect my ability to receive payment?

Possible. Submit a Declaration as soon as possible, at least over 2018.

“The failure to file a tax return in 2018 could potentially affect payments,” reads the IRS website.

If you’re worried that you owe money and can’t pay, the IRS recommends consult with a tax professional who can help you request an alternative payment plan or offer another solution.

Will new pays people on welfare, social security, pensions and disability benefits?


Will the unemployed and veterans these payments?

Yes — and those and others.

Will I get paid US citizens living abroad?

Yes, if they meet the requirements for income and have a social security number.

Do I have to pay income tax on the amount of my payment?


If my refunds are under arrest for default on a student loan, will I receive a new payment?

No. In fact, the bill temporarily suspends almost all attempts to repay the debts through tax return, including before the IRS. But this disclaimer may not apply to people who receive child benefit.

Unemployment benefits

Who will be covered by the expanded programme?

The plan covers far more workers than usual are entitled to unemployment benefits, including self-employed persons and workers employed part-time.

Summary: those who are unemployed, partially unemployed or cannot work for various reasons related coronavirus, are more likely to receive benefits.

How much will I get?

It depends on your state.

According to Andrew Stettner, senior researcher at the Century Foundation, a research group in the field of public policy, payments will be expanded to replace the salary of the average worker. A worker earns about $ 1,000 a week, and unemployment benefits often replace about 40% to 45% of this. The expansion will fill the gap.

In accordance with the plan, employees eligible will receive an additional 600 dollars a week in addition to the benefit of the state. But some States are more generous than others. According to the Century Foundation, the maximum weekly payment in Alabama is $ 275, but in California it is $ 450, and in new Jersey — 713 dollars.

For example, a worker earning $ 1,100 a week in new York; he will be entitled to receive the benefit of the state of unemployment in the amount of $ 504 per week maximum. Under the new extension, he will receive an additional $ 600 of Federal awards for the unemployment for the total sum 1104 of the dollar that, in General, will replace his initial salary.

The state has the ability to provide the entire amount in one payment or send additional part separately. But all this must be done on the same weekly basis.

Covered any employees of higenamine, freelancers and independent contractors?

Yes, self-employed people are entitled to unemployment benefits.

Benefit amounts will be calculated based on previous income using the formula from the program of unemployment assistance in case of natural disasters. Self-employed workers will also be entitled to additional weekly allowance of $ 600 provided by the Federal government.

What if I work part-time and lost work due to pandemic, but in my state allowance does not extend to workers in part-time? I still have the right to assistance?

Yes. The part-time employees are eligible for benefits, but the benefit amount and the duration of its action depends on your state. They are also entitled to additional weekly allowance of $ 600.

What if I Covid-19 or do I need to take care of the family member who has?

If you are diagnosed, you are experiencing symptoms or are awaiting a diagnosis — and as a result remained without work, have become partially unemployed or unable to work — you will be insured. The same thing happens if you have to take care of your family member or the household who was diagnosed Covid-19.

What to do if the school or daycare of my child closed?

If you rely on the school, kindergarten or other institution for the care of a child, elderly parent or another family member to enable you to work, and the institution was closed due to coronavirus — you have the right to help.

What if the health care provider advised me to isolate themselves? What about the more common orders to stay home?

People who need to isolate themselves, have the right to help. The law also stipulates that persons who can’t get to work because of quarantine imposed as a result of flash needs to get paid.

I was going to start a new job and now I can’t get there because of the pandemic. I need to know?

You have the right to receive benefits. You will also be insured if you were fired from a new job and did not have sufficient seniority to qualify for benefits in normal circumstances.

I had to leave work due to the coronavirus. Can I apply for benefits?

Different. Let’s say your employer didn’t fire you, but you had to leave because of the quarantine, as recommended by the medical provider, or due to the fact that the kindergarten your child is closed and you are the primary guardian. Such situations are covered by the terms of the new rules.

But this does not apply to people who retire (or want to leave) out of fear that continuing to work will subject them to the risk of Contracting coronavirus.

The employer shut down my workplace due to the coronavirus. Am I eligible for benefits?

Yes. If you are unemployed, partially unemployed or unable to work due to the fact that your company closed, you are subject to the bill.

The breadwinner of my family have died from the coronavirus. I was counting on his income and I don’t work. If they cover this situation?


Who does not rely payments?

Employees who can work from home, and those who get paid sick leave or paid family leave are not covered by the terms of the new benefits. People who first are looking for work and are unable to find, also not entitled to the payments.

How long will be paid the money?

Many States already provide benefits for a period of 26 weeks, although some States have shortened this period. Others provide a sliding scale tied to employment levels.

The law provides all relevant employees with additional 13 weeks. Thus, participants in States with 26 weeks will be eligible for 39 weeks in total. The total amount may not exceed 39 weeks, but in some States can be less.

Additional payment in the amount of $ 600 will last up to 4 months, covering weeks of unemployment ending on July 31.

How long will the expanded program?

Extended coverage is available for employees who have recently received the right to unemployment benefits for several weeks, commencing on 27 January 2020 to 31 December 2020.

I already receive unemployment benefits. Will I get any more help?

Yes. Even if you already receive unemployment benefits for reasons not related to mers, your benefits at the state level will still be extended for 13 weeks. You will also receive an additional 600 dollars a week from the Federal government.

My check for unemployment recently ended — can I register again?

Yes. Skilled workers that have exhausted their benefits, as a rule, can re-apply. But how much you will receive and for how long, depends on what state you worked. Everyone will get at least another 13 weeks, together with an additional payment of $ 600.

Disqualifiziert me this income from other programs?

Maybe. An additional allowance of $ 600 is considered income in determining eligibility for participation in programs with a means test, with the exception of Medicaid and health insurance Programs children, known as CHIP.

How long do I have to wait for the Dole?

States want to abandon the one-week waiting period, but it is unclear how long it will take to process applications, especially due to the fact that the official agencies operate in tension because of their flow.

Student loans

The Federal government has refused a two-month payments and interest for many Federal borrowers. Expand these concessions in accordance with the new law?

Yes. Until 30 September will be automatically suspended payments on any student loan held by the Federal government. It is difficult to contact many credit agents, so check your account online in the coming weeks. Once you are logged in, view the current amount due. There you will be able to see whether you have any billing system so that you do not pay.

How do I know if my loan?

If you borrowed money from the Federal government — the so-called direct-loan — over the last 10 years, you definitely are entitled to assistance. 90% of the loans (in dollar terms) will come under the rules.

The old Federal family education loan (F. F. E. L.) that are not owned by the U.S. Department of education, do not fit, as well as loans Perkins, loans from government agencies or loans from private lenders such as Discover, Sallie Mae and Wells Fargo. The owners of all these types of loans may offer their own assistance programs.

Within a few weeks you should receive a notice indicating what happened with your Federal loans. You can continue to pay the principal amount if you want. Then, after 1 August, you should receive several notices, informing you of the termination of the suspension period and that you may be eligible to participate in the repayment plan based on income.

Will there be a credit agent to charge me the interest during the six-month period?

The bill says that interest rates “are not charged” during the period of suspension. At the end of the suspension carefully watch what does (or does not) your loan agent to get you back to the previous mode of repayment: errors are not uncommon.

Whether a six-month delay cost me money, as I’m trying to qualify for participation in the program for forgiveness of loans making 120 monthly payments?

No. The law States that the amount of your payments will increase by one payment each month for a six-month break, even if you will not make any payments. This is true for all programs forgiveness or rehabilitation loans.

Stalled during this period the deferred payment of wages caused by the delay of payments on the loan?

Yes. As well as the confiscation of tax refunds, the reduction of all other Federal payments and other compulsory fees.

Are there changes in the rules, if my employer pays some of my student loans?

Yes. Some employers do this as an employee benefit. In the period between the date of the signing of the bill and the end of 2020, they can offer assistance in the amount of 5250 dollars without counting the money as part of the employee’s income. If the employer pays for employee training, the money also will be considered for assistance in 5250 dollars.

Retirement accounts

What are the rules pension account suspended?

During the calendar year 2020 you will not have to make required minimum distribution from any individual retirement accounts or retirement savings plans in the workplace, such as 401 (k). Thus, you do not have to sell investments that may fall in value, leading to losses.

This change does not affect the pensions of the old type.

What if I need early to take money out of my IRA or retirement plan at work?

You can withdraw up to $ 100,000 this year without the usual 10% penalty if it happens due to the outbreak of coronavirus.

You will also be able to distribute any income taxes that you must pay within three years from the date you received the distribution. And if you want, you can put the money back into the account before the expiration of three years, although the rules typically prevent making such a great contribution.

This exception applies only to withdrawals related to the coronavirus. You have that right, if you have a spouse or dependent of a positive test result, or you have experienced a host of other negative economic consequences associated with the pandemic. Employers can allow employees to independently confirm that they have the right to withdraw money from your retirement account.

Can I still borrow money from my pension plan 401 (k) or other plan at work?

Yes, and you can take twice the normal amount. Within 180 days after adoption of accounts confirmation that you have been affected by the pandemic, you can take a loan of up to $ 100,000. Usually you cannot withdraw more than half of its balance sheet, but this rule is suspended.

If you already have a loan and you were to redeem it before 31 Dec, you get an additional year.

Charitable contributions

I want to help people who are suffering from the pandemic. Does the bill for charitable donations?

Yes. The bill provides for a new deduction — not only for the year 2020 — up to $ 300 in annual charitable contributions. It is only available to people who do not detail their contributions, and you expect a new figure by subtracting the amount you give from your gross income.

To be eligible, you have to give cash to a qualified charitable organization and not a Fund financed by the donors (charity account, which is often used by wealthy people for contributions in a particular year to maximize deductions). If you have already given money since January 1, that contribution will be considered a restriction of $ 300.

I’m lucky to have significant amount, and I want to give more to charity than usual. Have you changed the limits on such deductions?

Yes, it has changed. Under the draft law, donors can deduct 100% of their donations from adjusted gross income in 2020. If you have an income of $ 1 million, you can allocate 1 million dollars to charity and deduct the entire amount in 2020.

The new deduction applies only to gifts of cash, money that goes to charity. If you give money, say, your private Foundation, apply the old rules hold. And although organizations, Fund managers, donor-funded, are public, you don’t get a higher deduction for donations of cash to your Fund financed by donors.

If your assets are significant enough to allow you to give more of their income this year, you will not lose a deduction for the excess amount. You can use it next year, as it always has.

Other features of the bill

Will have a negative on my credit report if I will take advantage of the benefits associated with the pandemic, including the suspension of a student loan?

No. At least it shouldn’t.

The bill specifies that during the period beginning January 31 and continuing for 120 days after the termination of the national emergency, the lenders and other persons should mark your credit file as current, even if you use the changes in payments.

If you have a document with black marks before the pandemic, they remain, if you do not solve problems during emergencies.

Credit agencies can make mistakes. Be sure to check your credit report several times a year, especially if you are taking any assistance from any financial institution or payer this year.

Is there any relief for tenants in the new law?

Yes. The bill provides for a temporary, nationwide ban on eviction for all tenants whose landlords have mortgage loans backed or owned by Fannie Mae, Freddie Mac and other Federal entities. It will last for 120 days after passage of the law, and landlords may not charge any fees or penalties for non-payment of rent.

Did the law illegal disconnection of Internet service providers for individuals or small businesses that can’t pay their bills?


Banned whether the statutory utility providers to disconnect services?


How to calculate how much you will get the quality of care in pandemic

Individuals with adjusted gross income up to $ 75,000 per year will be eligible for a full a check for $ 1,200. Grace checks will be issued to individuals who earn up to 99 000 dollars a year (the amount of the payment falls to $ 5 for every $ 100 of income in excess of $ 75,000).

Married couples have the right to receive $ 2,400 if their adjusted gross income is less than $ 150,000 per year. Grace checks on a sliding scale will apply to couples who earn up to 198 000 dollars. Couples will also receive an additional $ 500 for each child under the age of 17 years.

People who apply as heads of households (usually single parents with children), are entitled to receive a cheque for the sum of $ 1,200 if they have adjusted gross income of up to 112 USD 500 per year. Grace checks on a sliding scale is available for heads of households earning up to 136 500 dollars a year. Heads of household also will receive an additional $ 500 for each child under the age of 17.

How many Americans will receive these payments? According to Kyle Pomerleau, the tax expert at the American enterprise Institute, approximately 125 million people will receive a check, or about 83% of those who filed tax returns.

Who will not get a check? Chief among those excluded from receiving payment, are wealthy “non-resident foreigners” and “dependents” who can claim to make someone else’s tax return.

Will there be another payment this summer? Maybe. President trump said that it is possible, but only if the economy will hold in an unstable state throughout the spring and will require additional growth.

The Washington Post offers a calculator that will help you calculate how much you owe in the framework of assistance in connection with the pandemic coronavirus.


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