At Helsell Fetterman, we are committed to your cause.

COVID-19 for Individuals

INDIVIDUALS

The CARES Act:  The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) provides the following relief for individuals:

Cash payments:

  • Every adult will receive $1,200 and every child will receive $500*.
  • *These payments will phase out for individuals with annual income up to $75,000
  • *These payments will be completely phased out for individuals with annual income over $99,000 and couples with income over $198,000.
  • Annual incomes are based on 2018 or 2019 tax filings.

Retirement plans:

  • Required minimum distributions are waived for 2020.
  • For retirement plan hardship withdrawals and loans:
    • Early-withdrawal penalties waived on retirement accounts up to $100,000.
    • Loans from certain retirement plans increased from $50,000 to $100,000 and borrowers may skip payments due in 2020.

Unemployment insurance:

  • Unemployment insurance coverage is expanded from 3 months to 4.
  • Each recipient will receive an additional $600 per week in unemployment insurance.
  • Part-time, gig workers, freelancers, and contractors are eligible for unemployment benefits through the end of 2020.

Tax returns:

  • The deadline for filing and payment of 2019 federal income taxes has been extended to July 15, 2020.
  • The deadline for filing and payment of 2019 federal gift taxes has been extended to July 15, 2020.
  • The deadline to make 2019 contributions to IRAs has been extended to July 15,2020.
  • The deadline to make 2019 contributions to health savings accounts (HSAs) has been extended to July 15, 2020.

Student loans:

  • Employers can provide up to $5,250 in tax-free student loan repayment benefits.
  • Payments and interest on federal student loans is suspended for 6 months.
  • Students who are forced to withdraw from school due to the outbreak may have the portion of their loan covering that semester canceled.

Insurance coverage:

  • All private insurance plans must cover COVID-19 treatments and vaccine
  • All coronavirus tests must be free.

Charitable deductions:

  • For 2020, a charitable deduction of up to $300 is permitted to all taxpayers who take the standard deduction or itemize.
  • For 2020, the 60% of adjusted gross income limitations on deductions for charitable contributions is suspended.

Other resources:

 

Back to COVID-19 Main Page

 

Connect with Helsell

1001 Fourth Avenue, Suite 4200
Seattle, WA 98154

(206) 292-1144

Contact Us

     
Proud LawPact Member

U.S. News - Best Lawyers©

Stay Informed

Subscribe to our newsletter offering insights into relevant legal issues.

Make a Payment
Pay