Homeowner Assistance Fund (HAF)

 

If COVID-19 has made it difficult for you to pay your mortgage, utilities, or other housing payments, financial assistance is on the way. The Homeowner Assistance Fund (HAF) was established by the American Rescue Plan Act to help homeowners financially impacted by COVID-19 with housing-related costs.

Find Homeowner Assistance Fund programs in your area.

If the program in your area is up and running, you may start your application process. Funds are limited. Some programs may not have enough funds for every applicant, so it is important to apply as soon as you’re able.

If your program is not yet available, check the program’s website which may allow you to sign up for timing updates and alerts.   

Learn more about the Homeowner Assistance Fund.

Thank you,

Consumer Financial Protection Bureau

For Covid skeptics... Hard dollar proof from insurance insdustry

 

Mostly due to the pandemic, life-insurance payouts last year rose 15% to $90.43 billion, the sharpest rise since the 1918 influenza epidemic drove them up 41%, according to the American Council of Life Insurers. Meanwhile, sales of insurance policies took their biggest jump in 25 years, according to industry-funded research firm Limra. Combined with good returns on some investments, that lifted industry assets by 7.7% to $8.2 trillion, the ACLI’s figures show. 

Thanks to The Wall Street Journal writer Leslie Scism, December 9, 2021.

Claim the Child Tax Credit (CTC) and stimulus payments if you didn't file income tax return

 Most Americans received stimulus payments during Coronavirus because they had filed a federal income tax return in the previous year. If you missed receiving payments because you didn't file a tax return, there is still time to claim your payments. check out this link to the Social Security website: https://www.ssa.gov/coronavirus/eip/?utm_campaign=ocomm-eip-22&utm_content=t2-learn-more&utm_medium=email&utm_source=govdelivery

A new non-filer sign-up tool is available if you do not usually file a tax return to claim the Child Tax Credit (CTC), and missing Economic Impact Payments, known as stimulus payments.

• Social Security excludes the Child Tax Credit as income and resources for 12 months when considering a person’s eligibility for Supplemental Security Income (SSI) and monthly SSI payment amount.
• Social Security does not count Economic Impact Payments and certain other disaster assistance against your eligibility for SSI or your SSI amount.

 

 

Insurance companies no longer covering 100% of Covid costs

"The days of full covid coverage are over. Insurers are restoring deductibles and co-pays, leaving patients with big bills." Headline in The Washington Post 9/18/21.

Maybe it is time for the unvaccinated to finally get the jab to protect themselves.

"In 2020, as the pandemic took hold, U.S. health insurance companies declared they would cover 100 percent of the costs for covid treatment, waiving co-pays and expensive deductibles for hospital stays that frequently range into the hundreds of thousands of dollars."

"But this year, most insurers have reinstated co-pays and deductibles for covid patients." Christopher Rowland, writing for the Post. 

 

Few go back to work when unemployment benefits are cut off early

 Despite the rhetoric, few Americans returned to work when red states cut back unemployment benefits early. Instead, consumer spending dropped, hurting the economies of those states. Half the states (26), all with Republican governors except one, have ceased expanded unemployment benefits during Covid. "Several recent studies, however, have concluded that the extra payments have played only a small role in this year’s labor shortages."

"Data released Friday by the Labor Department provided the latest evidence. It showed that the states that cut benefits have experienced job growth similar to — and perhaps slightly slower than — growth in states that retained the benefits. That was true even in the leisure and hospitality sector, where businesses have been particularly vocal in their complaints about the benefits."

Cutting benefits failed to force people back to work because they couldn't find childcare, didn't find jobs, refused to work due to the  more dangerous Delta variant (had health problems themselves or had family members to protect), were unwilling to work for low wages, 

"Cutting off the benefits left unemployed workers worse off on average. The researchers estimate that workers lost an average of $278 a week in benefits because of the change, and gained just $14 a week in earnings. They compensated by cutting spending by $145 a week — a roughly 20 percent reduction — and thus put less money into their local economies."

Get the details from Ben Casselman writing for The New York Times: https://www.nytimes.com/2021/08/20/business/economy/unemployment-benefits-economy-states.html?campaign_id=12&emc=edit_my_20210823&instance_id=38609&nl=your-money&regi_id=83720664&segment_id=67012&te=1&user_id=bde4c6c63beab087f13b761e1ee9fe1e

Evaluating College Aid Offers and Asking for More Financial Aid

 We live in an upside down world due to Coronavirus. Many families have experienced major disruptions to their financial circumstances. Ann Carrns, financial and college expert writing for The New York Times reports on last minute strategies to try to garner more financial aid if you family has suffered a major income loss. Keep in mind that students need to file an annual FAFSA and re-apply for financial aid each year so tuck this info away for future reference even if it doesn't apply to you this year. 

With May 1 or May 3 as the deadline for newly admitted applicants to declare that they will enroll and submit deposits, students still have time to appeal to a college for more financial aid. “If the pandemic has caused a significant decline in income, a job loss or added medical expenses, you should let the school know.”

"Be careful to distinguish between 'gift' aid, like grants and scholarships, which doesn’t have to be repaid, and loans, which do. Subtract the gift aid from the college’s cost of attendance — the total cost of tuition, housing, meals, books and supplies — to get a net price. Do this for each school before considering how much of the cost you can cover from savings and earnings, and how much you would have to borrow to cover any shortfall."

"One big factor this year is that the Free Application for Federal Student Aid — the gateway to federal as well as state and much institutional financial help, known as FAFSA — required students to report financial information from 2019. So families that fell on hard times during the pandemic may find their aid offers don’t reflect their true situation."

"College financial aid officials have discretion to use 'professional judgment' to increase aid if a student’s circumstances have changed."

SwiftStudent is a free tool to help students file an appeal letter. https://formswift.com/swift-student

"uAspire, created a free online cost calculator to help applicants make 'apples to apples' comparisons of aid offers. The Consumer Financial Protection Bureau also offers an online tool to compare offers, and the Institute for College Access & Success offers a tip sheet."

 

If you lost a loved one to COVID-19, you may be eligible for a government program that pays for funeral expenses. The Federal Emergency Management Agency (FEMA) will pay up to $9,000 for funeral expenses for loved ones who died of COVID-19. Survivors can apply for benefits by contacting FEMA, toll-free, at 844-684-6333. To find out if you qualify, read FEMA’s Funeral Assistance FAQs.

Unfortunately, FEMA reports that scammers are contacting people and pretending to offer to register them for assistance. To avoid those scams, here are some tips:

• FEMA will not contact you until you call or apply for assistance.
• The government won’t ask you to pay anything to get this benefit. 
• Don’t give your own or your deceased loved one’s personal or financial information to anyone who contacts you out of the blue.

If you think you got a scam call, hang up and report it to the FEMA Helpline at 800-621-3362 or the Federal Trade Commission at ReportFraud.ftc.gov.

No 3rd stimulus payment? You need to file 2020 income tax return

Most Americans are already receiving the third and latest round of direct COVID-19 financial relief through Economic Impact Payments (EIP).

Yet, there are still millions of eligible individuals who haven’t received the first and second payments – and likely won’t receive the third – unless they file a 2020 tax return or tax extension by May 17, 2021.

If you work with or serve individuals with low incomes, ask them if they’ve claimed their EIP. If they haven’t, or may not have qualified in the past, refer them to our updated Economic Impact Payment webpage. 

Our updated page includes:

• Information on the latest round of EIPs and how to claim payment
• Updated payment information and eligibility requirements
• Resources for tax preparation
• Other commonly asked questions

Please help us reach and engage those who may not have accessed this critical relief.

View our complete guide to COVID-19 Economic Impact Payments.

 

Who benefits from Democrat's 2021 American Rescue Plan compared to who benefitted from Republican's 2017 Tax Cuts and Jobs Act

 The following analysis was conducted by the non-partisan Tax Policy Center:

"According to a new analysis by the Tax Policy Center, the Senate version of the American Rescue Plan (ARP) would reduce federal taxes in 2021 by an average of $3,000 and raise after-tax incomes by 3.8 percent. Families with children would get an average tax cut of more than $6,000 under the bill, which now goes to the House for final approval."

(The American Rescue Plan is what is commonly referred to as the Pandemic Bill currently in the process of passage in Congress.)

"Simply in terms of whose taxes are cut, the bill is in stark contrast to the 2017 Tax Cuts and Jobs Act. In 2021, low- and moderate-income households (those making $91,000 or less) would receive nearly 70 percent of the tax benefits from the Senate measure. Among families with children, those low- and middle-income households would get nearly three-quarters of the benefit. By contrast, nearly half of the TCJA’s 2018 tax cuts went to households in the top 5 percent of the income distribution (who made about $308,000 that year)."

Check out the bar graph comparing the vast differences in who benefited from these two major bills at: 

https://www.taxpolicycenter.org/taxvox/pandemic-bill-would-cut-taxes-average-3000-most-relief-going-low-and-middle-income-households

"The ARP, passed only with Democratic votes, distributes more than two-thirds of the tax cuts to low- and middle-income households while they received only about 17 percent of the TCJA’s tax benefits."

 

How To Sign Up For A COVID-19 Vaccine In Your State

 Check out this resource for finding the vaccine: https://www.npr.org/sections/health-shots/

Use NPR's tool to find out where to start when it's your turn to get the COVID-19 vaccine. Plus, helpful advice about how to navigate the system.

Tax problems from remote work

 If you've been working remotely (as an employee or self-employed) from outside your "home" state, you may have to file income tax returns and pay taxes in more than one state. For people who have been traveling around and visiting multiple states... ouch! First find out if your "remote" state has an income tax. seven states — Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming — levy no state income tax; New Hampshire and Tennessee, don't tax earned wages. New York and California are "famously aggressive" about taxing remote workers according to Laura Saunders, writing for The Wall Street Journal, the source of much of this info. 

About 15 states (& DC) have cross border agreements with adjoining states to not tax workers temporarily WFH due to the coronavirus. Employers include info on where the worker earned money on W-2 forms. Tax preparers will also ask questions.

Each state tax system is unique with rules for how long a worker is in residence, how much income is earned, and the worker's true home state. You may be eligible for a credit to prevent or reduce double taxation. 

Find out the criteria for being a taxable resident in the states where you worked in 2020.

If your job is based in New York, Arkansas, Connecticut, Delaware, Nebraska or Pennsylvania but you worked in another state: the "convenience" rule taxes an individual on where a job is based, not where they reside or actually work. you may end up being taxed by the state where your job is based as well as by the state where you actually worked.

Sources of help: your employer, AICPA: https://www.aicpa.org/

 

Unemployment compensation is taxable: Stimulus payments are NOT taxable

 Unemployment insurance payments are taxable by the federal government and states. Recipients can opt to have taxes withheld from their payments. If you failed to do so, you need to prepare now for the tax impact. You won’t, however, owe Medicare and Social Security taxes on jobless benefits as you would with paycheck income.)

The good news is that you don’t have to pay income tax on the stimulus checks, also known as economic impact payments. The first payment in April was for up to $1,200 per person, plus $500 for each child. The second stimulus in December was up to $600 per person, plus $600 for each child.

"Individuals with income of up to $75,000 ($112,500 for individuals filing as “head of household,” typically single parents) and married couples filing jointly with income up to $150,000 qualified to receive the full payment. People with higher incomes got smaller payments or nothing if their income exceeded certain caps."

"If you were eligible for the payments but didn’t receive them for some reason — or didn’t receive the full amount — you can still get the money by claiming a “rebate recovery” credit on your 2020 tax return. You must file a return, even if you’re not otherwise required to do so, to claim the credit."

President Biden has proposed a third round of stimulus payments of as much as $1,400.

Thanks to Ann Carrns of The New York Times.

 

COVID-19 vaccine scams

As the COVID-19 vaccine roll-out continues, it’s important to be on the lookout for scams. The Financial Crimes Enforcement Network (FINCEN) recently issued a new warning about vaccine scams:

• Beware of scams offering early access to vaccines for a fee.
• Keep an eye out for phishing scams where scammers email or text you with phony vaccine information.
• Steer clear of scammers trying to sell fake versions of vaccines.

Here are the facts:

• You can't pay to get early access to the vaccine.
• Medicare covers the cost of the COVID-19 vaccine. COVID-19 vaccines are also free to others throughout the country, although providers may charge an administration fee.
• Don't share your personal or financial information if someone calls, texts, or emails you promising to get you the vaccine for a fee.

For the latest vaccine updates, check with the Centers for Disease Control & Prevention (CDC). To learn more about how to manage your finances during the pandemic, visit consumerfinance.gov/coronavirus. For tips on how to avoid common scams, check out the CFPB’s fraud prevention resources.

Coronavirus Relief Resources from Consumer Financial Protection Bureau

Relief for renters
A new law provides relief for renters and extends the CDC’s Order to protect many people who can’t pay their rent from eviction through January 31, 2021.

Updates to unemployment benefits
Congress passed legislation providing an additional $300 per week to all workers receiving unemployment benefits. The supplement begins after December 26, 2020 and ends on March 14, 2021.

Mortgage relief deadlines extended
Some homeowners struggling to pay their mortgage now have a little extra time to seek help.

Student loan relief
Interest and monthly payments on federally-held loans are suspended through January 31, 2021.

For information on the second round of Economic Impact Payments visit IRS.gov.

---

What to do if you can’t pay your mortgage

If you are struggling to pay your mortgage help may still be available.

5 steps to ask for forbearance If the coronavirus has made it difficult to pay your mortgage, contact your mortgage servicer immediately. You may be eligible for forbearance, which temporarily pauses or reduces your monthly mortgage payments. View video

Get more details at our housing assistance site. Help paying bills If you are struggling to pay your bills we’ve got tools to help you make these tough decisions, like prioritizing bills or dealing with a debt collector.

Five tips for when you can’t pay your bills Having trouble paying your bills? We have tools that can help you evaluate your finances and make decisions about your budget. View video View video in Spanish

Did you get your CARES (coronavirus) payment? If not act now!

 The IRS has extended the deadline for individuals to claim their Economic Impact Payment (EIP). The IRS’s Non-Filers tool will be available through November 21, 2020.  

While most people who regularly file a tax return or receive federally administered assistance, like social security, were automatically sent their EIP, several million people have not yet received their payment. Most of these people have no tax filing obligation because they make too little income to file federal taxes.

The Consumer Financial Protection Bureau has created a handful of resources to help:

• Helping Consumers Claim the Economic Impact Payment: A guide for intermediary organizations

Misisng your stimulus check?

 Thanks to Michelle Singletary, financial writer for the Washington Post, for this helpful info. Lots of Americans may have thrown out what looked like junk mail but really contained not a stimulus check but a stimulus debit card. The cards were sent in May and June from MetaBank and came in a plain envelope with no governmental IRS or Treasury markings. Just another glitch in these trying times. 

So the Treasury is sending out reminder letters with a return address: Economic Impact payment Card, PO Box 247022, Omaha, NE 68124-7022. The letter provides instructions to call customer service: 800-240-8100 to report the card lost or stolen or to get a free replacement card. 

How is the financial health of Americans changing over time?

If you are facing challenging financial stress due to the coronavirus, you are not alone. Even in 2019, before the virus, most Americans were not financially healthy according to research by the Financial Health Network https://finhealthnetwork.org/research/u-s-financial-health-pulse-2019-trends-report/?utm_source=nyt-paid-post&utm_medium=pulse-button&utm_campaign=nyt-paid-pulse
"In a year-over-year analysis, the second annual U.S. Financial Health Pulse report reveals that the majority of Americans are still not financially healthy, despite an economy that has continued to grow" based on 2019 data before the virus.

"The 2019 Trends Report presents findings from the second annual U.S. Financial Health Pulse consumer survey, including:
1. Only 29% of Americans are financially healthy, despite a booming economy.
2. Financial health disparities based on income, age, gender, and race have persisted since 2018.
3. Financial health changed for millions of Americans from 2018 to 2019, often dramatically.
4. People who had changes in their employment and physical health saw the largest year-over-year shifts in their financial health."
Keep in mind that these data and conclusions are from 2019 before coronavirus.

Taking the Nation's Financial Pulse in Uncertain Times

"Millions of Americans were struggling financially, even before the Covid-19 crisis." 

"The U.S. Financial Health Pulse shows that only 29 percent of Americans were financially healthy in 2019. Just over 70 percent of Americans were not financially healthy and may be unprepared for changes in their income, financial shocks or an economic downturn. These figures were roughly the same as 2018, but likely to change as the coronavirus outbreak takes its toll on the economy."

https://www.nytimes.com/paidpost/financial-health-network/taking-the-nations-financial-pulse.html?cpv_ap_id=50043239&sr_source=lift_morein&tbs_nyt=2020-March-nytnative_morein

"The U.S. Financial Health Pulse led by the Financial Health Network, is a landmark study designed to capture a more holistic picture of the financial health of Americans. The Pulse follows a large group of the same respondents year over year. It also combines survey data on spending, saving, borrowing and planning to devise a FinHealth Score™ that gives a detailed and realistic picture of how Americans are doing financially. Respondents fall into three categories: financially healthy, financially coping and financially vulnerable."

While the Financial Health Network is primarily geared to professionals in pubic policy, finance, and social networks, the knowledge that you are not alone if you are experiencing financial problems is key to taking action rather than blaming yourself. This blog is designed to for self-help and awareness of how to change one's behavior and resources for improving financial well-being.

A ONE-OF-A-KIND CONTINUING STUDY
SHOWS THAT MILLIONS OF PEOPLE
ARE LIVING ON THE EDGE

A ONE-OF-A-KIND CONTINUING STUDY
SHOWS THAT MILLIONS OF PEOPLE
ARE LIVING O 

A ONE-OF-A-KIND CONTINUING STUDY
SHOWS THAT MILLIONS OF PEOPLE
ARE LIVING ON THE EDGE

Jump-Start your Emergency Savings

If you are lucky enough to still be employed now is a great time to begin or boost your emergency fund, especially since there are fewer temptations to spend in this time of coronavirus.
Recently The Wall Street Journal published "35 ways to jump-start your emergency savings." among the suggestions:
If you are paid bi-weekly you get an extra paycheck two months of the year; put that into savings.
Sweatpants tax: when work life returns to normal; charge yourself a sweatpants tax each time you wear those comfy clothes. Put the "tax" into savings. Consistent with commitment strategy of https://www.stickk.com/
Use https://missingmoney.com/en/ to search for unclaimed property or refunds from state treasurers. I found modest sums belonging to my elderly parents and was able to claim the money for them.
Get a credit card that offers points that can be converted to cash and then deposit into savings. I get cash back on two credit cards which reduces the amount I owe: I can put the same amount into savings.
Set up an auto-transfer into savings with a built-in escalator to increase by $ or %.
When you splurge on a purchase put the equivalent amount into savings.
If you have high deductible health insurance with a Health Savings Account, build up the HSA.
Use a round-up app linked to your credit or debit card that rounds up purchases to the next dollar, like Digit https://digit.co/ or Acorns https://www.acorns.com
Increase your income tax withholding and save your refund... But only if you are committed. on the flip side, if you always overpay your taxes, adjust your withholding and set up an automatic deposit to savings of your monthly decrease in withholding.
Assuming you are eating out less, review your credit/debit bills from before the "Stay at home" period and save part of the amount you usually spent on restaurants each month.
Pick one expense each month and cut it from your spending; add to savings.
If you are lucky enough to get a raise; commit the extra monthly amount to savings.
Join "no spend" challenges on social media; benefit from the social support.
Sell something once a month (KSL.com, Craigslist, etc.) and put the amount into savings.
Have your paycheck deposited to saving; transfer the amount needed for expenditures into checking and leave the rest to grow in an online savings account.
If going to work... (not working from home) bring your lunch 2-3 times per week and save the amount you would have spent.
Consider yourself lucky if you are still employed at full salary and commit to sharing some of your fortune with the less fortunate.

What's happening in the stock market during coronavirus?

    THROUGH THE END OF MAY - The S&P 500 is down 5.0% YTD (total return) through 5/29/20. Just 121 stocks in the index are up YTD. The S&P 500 consists of 500 stocks chosen for market size, liquidity and industry group representation. It is a market value weighted index with each stock's weight in the index proportionate to its market value (source: BTN Research).  

TRILLIONS - From its 2/19/20 stock market high, US stocks lost $12.7 trillion in market capitalization through the stock market low close on 3/23/20. From its 3/23/20 low point, US stocks have gained $8.8 trillion in market capitalization through the close of trading last Friday 5/29/20 (source: Wilshire).   Source: David Swapp, CFP® 801-566-6639 | david@networthadvice.com Bottom line: DON"T try to time the market. Decide on your long term goals and tolerance for variability and stick with your chosen asset allocation.

Lost Your Health Insurance? Check out Affordable Care Act Coverage

As unemployment continues to skyrocket due to COVID-19, a new analysis shows that more than 20 million people losing job-based insurance could get a tax credit on the Affordable Care Act’s insurance exchanges.

But nearly 6 million people will not be eligible for such credits and must pay the full cost of coverage, according to the analysis from the Kaiser Family Foundation released Wednesday.

A Kaiser Family Foundation analysis found that more than 20 million people who are losing employer-sponsored health coverage after losing their jobs could qualify for tax credits under the Affordable Care Act. Over 8 million could get an ACA plan through a marketplace and 12.7 million could get their plans via Medicaid, according to the analysis, based on unemployment claims filed March 1 to May 2.

Details at: https://www.fiercehealthcare.com/payer/kff-more-than-20m-newly-unemployed-could-qualify-for-aca-tax-credits