Finally, an agreement! Over the weekend, Congress finalized another stimulus package worth over $900 billion. This crucial support is on its way, so here's what you can anticipate.

  • Individuals earning up to $75,000, heads of households making up to $112,500, and couples with up to $150,000 will receive $600. Payments decrease by $5 for every $100 earned beyond these thresholds, disappearing entirely at $99,000 for individuals and $198,000 for couples. Families will also get an extra $600 for each child under 17. These payments are based on 2019 tax returns, so if you qualified in 2020 but not in 2019, expect your payment as a tax credit when filing your 2020 return.
  • Federal unemployment benefits will restart at $300 weekly (down from $600) and will last until March 14. Freelancers excluded from the Pandemic Unemployment Assistance program can access an extra $100, with details to be sorted out by the states.
  • The Pandemic Unemployment Assistance for gig workers, self-employed individuals, and freelancers will also extend until March 14, serving approximately 13 million people.
  • State unemployment benefits will be available for an additional 11 weeks, totaling 50 weeks.
  • The Paycheck Protection Program (PPP) has reopened, offering $285 billion in funding, allowing struggling companies to apply for a second loan. Restaurants and food service businesses can borrow up to 3.5 times their monthly payroll, while other businesses can take up to 2.5 times. Reports indicate initial PPP recipients may be able to deduct payroll costs and other expenses from forgiven loans.
  • The eviction moratorium is extended until January 31, along with an additional $25 billion for rent relief. Eligibility is limited; you must have been laid off or faced income loss and be trying to make partial payments. More information on this program is available through various national resources.

We understand you have questions. Here are some likely answers, but keep in mind that information is evolving. We'll keep you informed as updates come in.

When Will My Stimulus Check Arrive?

Last time, checks began arriving in about two weeks, though some experienced delays. This time, Treasury Secretary Steve Mnuchin stated payments should start before year's end. With much of the necessary information already collected, we hope for fewer hold-ups. If you haven't received your payment, or if you got less due to a new child, you can claim a tax credit on your 2020 return. Remember, credits reduce your tax dollar-for-dollar. As noted by the IRS: This credit generally increases your tax refund or lowers your tax bill.

What Do I Need to Do for Unemployment Benefits?

If you're currently receiving unemployment, generally, you won't need to do anything. If your benefits have expired, visit your state's unemployment website for guidance. Be prepared for potential delays in resuming benefits.

Is Mortgage Relief Still Available?

The CARES Act continues to offer two 6-month forbearance periods for federally-backed mortgages. The deadline to contact your lender to participate has been extended to the end of February.

What About My Student Loans?

Federal student loan payments are paused until January 31, with interest rates set to 0%. This means any payments made during this period will go directly to the principal. Earlier bills proposed extending this pause until April, but that provision has not been included.

What If I Can't Pay My Bills?

Don't hesitate. Reach out to your lenders and explore local assistance programs, including those from utility companies. Here's a helpful roundup of resources and a guide to finding financial assistance if you're struggling with bills.