This federal stimulus package follows a $900 billion package, signed last December, which was set to expire March 11, 2021. For many members, this will provide relief in the form of direct payments, unemployment benefits, small business loans and more.
Americans who made less than $75,000 in 2019 will receive a direct payment of up to $1,400 per adult and child, including mixed-status families, whose members include people with different citizenship or immigration status. That means a family of four could receive as much as $5,600. Married couples making less than $150,000 could receive as much as $2,800 in direct payments.
Payments will be based on the information taxpayers provided on their 2019 or 2020 tax returns. If you’ve already filed your 2020 tax return, the Internal Revenue Service most likely will use that information to calculate and send your funds. If you haven’t filed yet, they’ll use your 2019 return.
This round of stimulus payments could begin as early as mid-March. The IRS will start by issuing funds to those whose bank information they have on file, which is the same way that CARES Act direct payments were deposited this past spring. It’s a good idea to set up deposit alert notifications in your mobile app* or online banking to get an email, push notification or text message so you’ll know when your payment has been deposited. If you haven’t provided the IRS a bank account number for direct deposit, they’ll mail you a check or prepaid debit card to the address listed in the last tax return you filed.
As with the last round of direct payments, be on the lookout for potential scams from phishing emails, phone calls and copycat websites. Scammers may pose as a government official or agency as a way to gain access to your personal information. Be wary of emails, phone calls and messages that request your confidential info. Keep your information secure and watch for any suspicious activity.
Child Tax Credits
In addition to these stimulus paychecks, the new relief package also includes a new child income tax credit for one year. This benefit allows $3,600 for each child under the age of 6 and $3,000 per child aged 6 to 17. The tax credit is based on income, and some families may be able to receive monthly payments instead of waiting up to a year for a tax refund. Check the IRS website for more details.
The new relief package continues the existing Enhanced Unemployment Insurance benefits for unemployed Americans. It includes an additional $300 per week.
This legislation also extends 2 additional unemployment programs: the Pandemic Unemployment Assistance program, which is created specifically for gig workers, freelancers, independent contractors, the self-employed and others; and the Pandemic Emergency Unemployment Compensation program, which is for those who exhaust their regular state benefits.
Small Business Assistance
The new bill allocates nearly $50 billion in emergency pandemic aid to small businesses. This includes additional funding and expanded eligibility for the Paycheck Protection Program (PPP), more funding for the Economic Injury Disaster Loan (EIDL) program, as well as a new $25 billion grant program for restaurants and bars.
If you’re interested in applying for a PPP loan through Navy Federal, visit our COVID-19 Assistance for Business Members page. To learn more about government COVID-19 assistance for small businesses, visit the SBA’s website.
Navy Federal Relief Options
As the nation continues to deal with this time of economic uncertainty, your Navy Federal Credit Union team remains committed to serving you and your families. Visit our COVID-19 page for more information on Navy Federal’s relief offerings.