How to apply to economic aid due coronavirus?

How to apply to economic aid due coronavirus?

As of Monday, April 13, people living in the United States began receiving the popular government aid for the duration of the quarantine, $1,200. However, there is a great deal of ignorance about this issue because it is not known whether a direct deposit will be received or whether a check will be received, or when this aid will be received.

There are many types of assistance and the five most important ones are explained below:

1. – Paycheck Protection Program (PPP)

Small businesses with less than 500 employees created before February 15 of this year can apply. Also, people who are self-employed and lost their income because of Covid 19, such as food delivery people or drivers from Uber for example; every self-employed person on their tax return fills out Schedule C where they put in the income received, and that is the part that will be used to calculate this aid; any person or company will be able to access through the 1099-K form with which they will prove what their income was.

How do you apply?

Through the internet the SBA (Small Business Administration), however, the SBA encourages people to go to their bank, preferably where they have a credit relationship, although this application can be made at any bank. When you go and make your request, they send you a link where you fill out the form to apply for PPP aid. It is understood that the application that is made, in the case of small businesses, is to pay payroll and associated costs, this aid can be forgiven and not charged. Similarly, self-employed workers, being their own employees, can apply. For more information, we recommend you go to your local bank.

2. – Unemployment Insurance:

All persons dismissed as a result of Covid19 can apply. Each region has its own work website, however at www.careeronestop.org you will find the information of the links of each state to apply according to the place of residence. It should be noted that the amounts for this type of assistance vary from state to state. For example, in New York they are giving a maximum of 435 USD per week for 26 weeks. However, if you apply from California, you will receive $450 per week for 26 weeks. In Texas it increases to $507 per week for the same number of weeks. Finally, in Florida $275 per week for 12 weeks; given the virtue of contingency, it is planned to study the possibility of extending the number of weeks.

3. – Federal Unemployment Compensation

The United States Federal Government included an additional aid of $600 for all the states. That is to say, if you are in Florida and you applied for Unemployment Insurance, at the moment of being approved and receiving the contribution, this $600 weekly compensation is automatically included.

4. – Stimulus check:

All persons living in the USA who have their valid Social Security will be able to access this aid and will receive $1,200 regardless of whether they are working or not, as long as their individual declaration is not greater than $75,000 per year or family declaration is not greater than $150,000 per year. If you individually declared between $75,000 and $99,000 you will suffer a cut. If you exceed 99,000 USD per year you will not be able to receive this benefit. Similarly, if you file a joint tax return for more than 199,000 USD per year, you will not be eligible. It is important to note that for those who owe child support, the state keeps the amount you owe and gives it to the recipient.

It is a stimulus that the government grants as long as you have paid your taxes (IRS) no matter your immigration status. Therefore, it is not necessary to apply for it, since the IRS has all your information for your tax return and, it is in the account registered with the IRS where they will deposit the amount, or if you do not have an account registered, it will be sent to the address that appears on your return.

For this purpose, it is recommended that you go to the IRS website and check that your details and address are correct.

5. – Economic Advance of the 401-K:

People saving for their retirement in this program normally must wait until they are old enough to make the withdrawal, and if they want to do it before, a penalty plus taxes must be paid. But, by virtue of the contingency, the government is allowing them to withdraw and use the money saved without paying tax or penalty, within up to three years and then return it.