US Cares Act- How it Affects Your Family
All U.S. residents with adjusted gross income up to $75,000 ($150,000 married), who are not a dependent of another taxpayer and have a work-eligible social security number, are eligible for the full $1,200 ($2,400 married) rebate. In addition, they are eligible for an additional $500 per child. This is true even for those who have no income, as well as those whose income comes entirely from non-taxable, means-tested benefit programs, such as SSI benefits.
For the vast majority of Americans, no action on their part will be required in order to receive a rebate check as the IRS will use a taxpayer’s 2019 tax return is filed, or in the alternative, their 2018 return. This includes many low-income individuals who file a tax return in order to take advantage of the refundable Earned Income Tax Credit and Child Tax Credit. The rebate amount is reduced by $5 for each $100 that a taxpayer’s income exceeds the phase-out threshold. The amount is completely phased out for single filers with incomes exceeding $99,000, $146,500 for head-of-household filers with one child, and $198,000 for joint filers with no children.
Individuals may also be able to tap into retirement accounts. The provision waives the 10% early withdrawal penalty for distributions up to $100,000 from qualified retirement accounts for coronavirus-related purposes made on or after January 1, 2020. In addition, income attributable to such distributions would be subject to tax over three years, and the taxpayer may re-contribute the funds to an eligible retirement plan within three years without regard to that year’s cap on contributions. Further, the provision provides flexibility for loans from certain retirement plans for coronavirus-related relief.
Impact the US Cares Act has on the real estate industry:
The the U.S. Cares Act included a foreclosure and eviction moratorium:
This will prevent distressed properties from coming online during what experts are saying is a short-lived downturn. By enacting this moratorium the government has helped to protect property values across the country. Part of my optimism stems from Goldman Sachs GDP forecast for this year, which shows a huge jump from Q2 to Q3. Meaning, people will get back to work and we should have a fast recovering. In the meantime, the government will be doing everything it can to take the hurt away during the slowdown.
Section 4022. Foreclosure Moratorium and Consumer Right to Request Forbearance.
Prohibits foreclosures on all federally backed mortgage loans for a 60-day period beginning on March 18, 2020. It provides up to 180 days of forbearance for borrowers of a federally backed mortgage loan who have experienced financial hardship related to the COVID-19 emergency. Applicable mortgages included those purchased by Fannie Mae and Freddie Mac, insured by HUD, VA, or USDA, or directly made by USDA. The authority provided under this section terminates on the earlier of the termination date of the national emergency concerning the coronavirus or December 31, 2020.
Section 4024. Temporary Moratorium on Eviction Filings.
For 120 days beginning on the date of enactment, landlords are prohibited from initiating legal action to recover possession of a rental unit or to charge fees, penalties, or other charges to the tenant related to such nonpayment of rent where the landlord’s mortgage on that property is insured, guaranteed, supplemented, protected, or assisted in any way by HUD, Fannie Mae, Freddie Mac, the rural housing voucher program, or the Violence Against Women Act of 1994.
Section 2105. Temporary Full Federal Funding of the First Week of Compensable Regular Unemployment for States with No Waiting Week
This section provides funding to pay the cost of the first week of unemployment benefits through December 31, 2020 for states that choose to pay recipients as soon as they become unemployed instead of waiting one week before the individual is eligible to receive benefits.
Section 2104. Emergency Increase in Unemployment Compensation Benefits
This section provides an additional $600 per week payment to each recipient of unemployment insurance or Pandemic Unemployment Assistance for up to four months.
Unemployment website: https://www.usa.gov/unemployment
There are a variety of benefit and aid programs to help you if you lose your job. CareerOneStop.org is a good place to start. It can help with unemployment insurance benefits, job training, and finding a job. Unemployment insurance programs pay you money if you lose your job through no fault of your ...
I hope this information helps clear up any confusion you might have regarding how this US Cares Act is going to affect you and your family. As always, I am here even during this time to help you navigate the home selling and buying process. When you need me, just reach out.