Benefits of Stimulus Bill for Individuals

Practice Areas

By Ashleen Sahni

Stimulus Checks

Every Individual taxpayer who has income less than $75,000 will receive a one time stimulus check for $1,200 and married couples with income less than $150,000 will receive $2,400. An additional $500 will be given per child. Individuals earning more than $99,000 and couples earning more than $198,000 will not receive these checks.

Mortgage & Foreclosure Relief

Many states have mandated or otherwise urged lenders to assist their borrowers facing economic hardships through forbearance, temporary suspension of foreclosures and/or other similar measures.  Home and property owners with mortgages facing hardships due to the Covid-19 pandemic should consider contacting their banks and lenders as soon as possible to discuss options to potentially alleviate temporary conditions. Borrowers can typically request a forbearance (generally for 30-90 days) which will allow the postponement of monthly payments, without adversely impacting (though the forbearance reporting itself may have some minor negative impacts) their credit standing and without levying any late fees and charges. However, insofar as the full repayments are likely to be required upon the end of the forbearance period, borrowers should immediately also discuss long term options such as short term repayment arrangements or loan modifications, which would allow accrued payments and expenses to be added to the loan and paid over modified terms and conditions.

Unemployment Benefits

Individuals who lost their jobs due to COVID-19 are entitled to additional $600 per week termed as ‘Federal Pandemic Unemployment Compensation’. Independent Contractors will also be eligible for these unemployment benefits.