Looking for information on the recent CARES Act?
Find key resources, details of the relief bill and FAQs below.
What is the cares act?
The CARE act is a $2 trillion relief bill that will send money directly to Americans and greatly expand unemployment coverage. Its components include stimulus payments to individuals, expanded unemployment coverage, student loan changes, different retirement account rules and more.
If you’re eligible for a cash payment...
Most individuals earning less than $75,000 can expect a one-time cash payment of $1,200. Married individuals will each receive a check and families will get $500 per child. That means a family of four earning less than $150,000 can expect $3,400.
Which year of taxes is eligibility based on?
If you have already filed your 2019 taxes, your eligibility will be based on this income. If you haven’t prepared a tax return yet, you can use your 2018 return. If you haven’t filed that yet, you can use a 2019 Social Security statement showing your income to see what an employer reported to the I.R.S. You can find your adjusted gross income on Line 8b of the 2019 1040 federal tax return.
If you have not recently filed a tax return, file a return immediately, at least for 2018, according to the I.R.S. website. “Those without 2018 tax filings on record could potentially affect mailings of stimulus checks,” the site says. If you’re worried about money that you owe that you cannot pay, the I.R.S. recommends consulting a tax professional who can help you request an alternative payment plan or some other resolution.
How do I apply?
You DO NOT have to apply to receive this credit. If the Internal Revenue Service already has your bank account information, it will transfer the money to you via direct deposit based on the recent income-tax figures it already has.
When can I expect to receive the credit?
Treasury Secretary Steven Mnuchin said he expected most people to get their payments within three weeks.
If you or someone you know has lost a job...
States will still continue to pay unemployment to people who qualify. This bill adds $600 per week from the federal government on top of whatever base amount a worker receives from the state. That boosted payment will last for four months.
Who will receive this added unemployment benefit?
Those who are unemployed, are partly unemployed or cannot work for a wide variety of coronavirus-related reasons will be more likely to receive benefits.
How long will weekly federal payments last?
The extra $600 payment will last for up to four months, covering weeks of unemployment ending July 31.
The bill also provides all eligible workers with an additional 13 weeks of unemployment. So participants in states with a 26 week maximum will now be eligible for a total of 39 weeks. The total amount cannot exceed 39 weeks, but it may be shorter in certain states.
If you are self-employed and have lost income…
Self-employed people are newly eligible for unemployment benefits. Benefit amounts will be calculated based on previous income, using a formula from the Disaster Unemployment Assistance program, according to a congressional aide. Self-employed workers will also be eligible for the additional $600 weekly benefit provided by the federal government.
If you have COVID-19 or are self-quarantined and have lost income as a result…
If you’ve received a diagnosis, are experiencing symptoms or are seeking a diagnosis — and you’re unemployed, partly unemployed or cannot work as a result — you will be covered by Disaster Unemployment Assistance. The same goes if you must care for a member of your family or household who has received a diagnosis. The legislation also says that individuals who are unable to get to work because of a quarantine imposed as a result of the outbreak are eligible.
Let’s say your employer didn’t lay you off but you had to quit because of a quarantine recommended by a healthcare provider, or because your child’s day care closed and you’re the primary caregiver. Situations like that are covered. But this provision will not cover people who quit (or want to quit) because they fear that continuing to work puts them at risk of contracting coronavirus, according to congressional aides.
If you're a small business owner...
The CARES act (coronavirus relief bill) provides $10 billion for grants of up to $10,000 to provide emergency funds for small businesses to cover immediate operating costs.
There is $350 billion allocated for the Small Business Administration to provide loans of up to $10 million per business. Any portion of that loan used to maintain payroll, keep workers on the books, or pay for rent, mortgage and existing debt could be forgiven, provided workers stay employed through the end of June.
If you're a freelancer or independent contractor...
Typically, self-employed people, freelancers and contractors can't apply for unemployment. This bill creates a new, temporary Pandemic Unemployment Assistance program (PUA) representing $600 per week through the end of the year helping people who lose work as a direct result of the public health emergency.
Most states have yet to implement the PUA program and it is recommended to continue to visit the usual Disaster Unemployment Assistance page for updates.
If you're a property/homeowner...
Borrowers of federally-backed mortgage loans can request a loan forbearance on their payments (without penalties, fees, or interest) for at least 180 days.
Multi-family borrowers may request a similar forbearance for up to 30 days.
In addition, foreclosures on similar mortgage loans are prohibited for at least 60 days and evictions from properties related to several federal programs are also prohibited for a 120 day period.
If you have student loans…
Until Sept. 30, there will be automatic payment suspensions for any student loan held by the federal government. It is hard to contact many of the loan servicers right now, so check your account online in the coming weeks. Once you are logged in, look for the current amount due. There, you should be able to see if the servicer has reset its billing systems so that you are showing no payment due.
If you’ve borrowed money from the federal government — a so-called direct loan — in the past 10 years, you’re definitely eligible. According to the Institute for College Access & Success, 90 percent of loans (in dollar terms) will be eligible. Older Federal Family Educational Loans (F.F.E.L.) that the U.S. Department of Education does not own are not eligible, nor are Perkins loans, loans from state agencies, or loans from private lenders like Discover, Sallie Mae and Wells Fargo. The holders of all those kinds of loans may be offering their own assistance programs.
If you’re trying to qualify for the public service loan forgiveness program by making 120 monthly payments, the legislation says that your payment count will still go up by one payment each month during the six-month suspension, even though you will not actually be making any payments. This is true for all forgiveness or loan-rehabilitation programs.