Q: What is the CARES Act?
A: On March 27, 2020, President Trump signed into law the CARES (Coronavirus Aid, Relief, and Economic Security) Act. This law is the third stimulus package from Congress and is meant to provide financial support to businesses and individuals in response to the economic distress caused by the COVID-19 pandemic.
Q: What does this mean for unemployment benefits?
A: The law expands the scope of individuals who are eligible for unemployment benefits, including those who are furloughed or out of work as a direct result of COVID-19 and those who have exhausted existing state and federal unemployment benefit provisions. The law provides an increase in the amounts customarily available for unemployment under state law. This increase applies to unemployment payments made from the date of the law’s enactment, March 27, 2020, through July 31, 2020.
Q: How long before I start receiving unemployment?
A: States can agree to waive the waiting period for receipt of benefits to decrease gaps in income. Your state unemployment office will be able to provide you with specifics on when you can expect to start receiving unemployment benefits.
Q: How long do these expanded benefits last?
A: The CARES Act provides unemployment benefits assistance to covered individuals (who are not otherwise entitled to benefits under existing state or federal law) through December 31, 2020. This does include waiting periods for benefits under applicable state law. It is very important to note the increase will be applied only through July 31, 2020.
Q: Where can I get more information or ask specific questions about unemployment benefits?
A: The U.S. Department of Labor will provide general information. Given that each state has different unemployment guidelines and policies, it will be best to reach out to your state unemployment office for specific information.
Q: How do I know if I will be receiving a recovery payment?
A: The CARES Act does include financial support for individuals and families. U.S. residents with adjusted gross income under $75,000 ($112,500 for head of household and $150,000 for those married filing jointly), who are not the dependent of another taxpayer are eligible for a $1,200 ($2,400 if married) stimulus payment. Individuals who are eligible also will receive an additional $500 per child. Adjusted gross income is based on 2019 tax returns if filed or 2018 tax returns if 2019 tax returns have not been filed.
Q: What if my income was above the threshold in 2019?
A: The stimulus amount will be reduced by $5 for each $100 that your income exceeds the threshold. The amount is phased out completely for single filers with incomes exceeding $99,000, for head of household filers with one child with incomes exceeding $146,500, and for joint filers with no children with incomes exceeding $198,000.
Q: What if I can’t pay my mortgage because I have been put on furlough?
A: The law provides forbearance for those with “federally-backed” mortgage loans. The borrower will need to submit a request and affirm they are experiencing economic hardship during the COVID-19 pandemic. The borrower may request up to 180 days, and upon the borrower’s request, the period must be extended for up to 180 additional days. No fees, penalties, or interest beyond the amounts scheduled or calculated as if the borrower made all contractual payments on time and in full under the terms of the mortgage contract, will be permitted to accrue on the borrower’s account.
Q: What happens if I am on furlough and decide not to come back to work when I am recalled?
A: Refusal to accept suitable work may affect unemployment benefits.