How the Government's New Economic Package Can Help You - Lincoln Financial ...
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How the
Government’s
New Economic
Package Can
Help You
Source: Associated Press
Congress is poised to approve an unprecedented $2.2 trillion economic stimulus
package that will provide one-time checks for most Americans and significant
enhancements to unemployment benefits.
Both will provide much-needed help to those recently laid-off and to financially
stressed households as the coronavirus continues to stall much of the economy.
Here are some questions and answers about how the legislation can help you:
Who is getting a check? What do I have to do to get one?
Everyone earning up to $75,000 in adjusted For most people, nothing. The U.S. Treasury
gross income — the income on your tax return will direct deposit the money in your bank if
— and who has a social security number will they have that information from tax returns.
receive a $1,200 payment. The payment For everyone else, they will mail a check. If you
steadily declines for those who make more, didn’t file a tax return for either 2018 or 2019,
and phases out for those who earn more than your check could be delayed. The government
$99,000. For married couples, both adults can use your Social Security benefit statement
receive $1,200, with the phase-out starting at as well.
$150,000 of income and falling to zero for
couples who earn $198,000. Each child will also When will I get the payment?
get $500. For heads of household with one Government officials say within three weeks.
child, the benefit starts to decline at $112,500 Even if it arrives electronically, you should
and falls to zero at $146,500. receive a written notice within 15 days after
the payment that specifies how much you
received.
©2020 Lincoln National Corporation LCN-3015470-032720
Is there help in the bill for the How much might I receive?
unemployed? The total amount of unemployment insurance
The bill adds $600 a week for up to four depends on what each state provides.
months to standard unemployment benefits. Economists at Goldman Sachs calculate that for
The measure adds 13 weeks of coverage for the average worker who earns about $1,200 a
people who have exhausted their existing week, the enhanced weekly benefit should
jobless benefits. It also provides for states to fully replace their lost wages. For lower-income
let people collect payments immediately with employees of restaurants and hospitals, it
a one-week waiting period. should provide more than their usual salaries.
What if I only work part-time? What about housing payments?
Some states provide partial unemployment for Government-backed mortgage buyers Fannie
people part-time workers or those whose Mae and Freddie mac have said they will
hours have been reduced. The legislation also suspend all foreclosure sales and evictions of
provides incentives for states to set up borrowers in single-family homes owned by
programs that provide benefits to offset lost their companies. They have also expanded
pay through reduction of work hours. Those their forbearance program, offering more
programs are intended to provide companies borrowers relief for up to one year and
an alternative to cutting jobs. suspending late charges and penalties.
For example, the rescue bill would pay half the Together they guarantee about half of the U.S.
cost of providing benefits to those with Home market.
reduced hours through the end of the year to Also, the federal government suspended
states that launch such programs. foreclosures and evictions for mortgages
insured by the federal housing administration.
I am a gig worker, can I qualify? If you’re worried about missing a mortgage
Yes. The bill would create a temporary payment, contact your lender immediately.
pandemic unemployment assistance program Numerous banks have also said they are willing
to cover many workers not traditionally eligible to work with distressed borrowers.
for unemployment benefits, including self-
employed people, contractors and those with
limited work history. That program will last
through December 31.
©2020 Lincoln National Corporation LCN-3015470-032720
What about student loans?
Student loan borrowers have a few options.
If you have a federal student loan, you can
apply for a deferment or a forbearance at any
time. Both of these postpone payments
temporarily, but interest still accrues on some
loans with deferment and all with forbearance.
Federal loan borrowers can seek an emergency
administrative forbearance, which would allow
them to postpone payments for up to 60 days.
Borrowers must contact a servicer to apply.
The postponement is automatically applied for
borrowers more than 31 days late on
payments. Interest will not be added to the
balance at the end of the forbearance period.
Switching to an income-driven repayment plan
may be a good option for some borrowers, said
What about renters? Mark Kantrowitz, a student loan expert and
Renters’ fates depend on where they live and publisher of website Savingforcollege.com. If
who they rent from. Reach out to your landlord you’ve been laid off or your hours were greatly
or property management company to ask for reduced, the payment can be lowered to zero.
leniency.
Several cities have halted evictions due to the The federal government also lowered the
coronavirus. Fannie and Freddie are also interest rate on all federally held student loans
offering relief to owners of multifamily to 0% for an indefinite period. However, that
properties, on condition they suspend all will not lower the size of the monthly payment;
evictions of renters unable to pay because of instead it will apply the payment entirely to the
the virus. principle of the loan.
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Corporation and its affiliates.
Affiliates are separately responsible for
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obligations.
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