Alert: COVID Benefits Expire This Week.
Important COVID Benefits Expire this Week
At the end July, the additional $600/week of unemployment insurance benefits, eviction moratoriums, and tax extensions are set to expire. While Congress is currently negotiating a 4th COVID stimulus package, it is uncertain what the future of these benefits will be.
$600/week Unemployment Benefit Expires Next Week
Back in March, Congress approved a $600/week increase to unemployment benefits. This has provided some financial stability while people were ordered to shelter in place and employers figured out how to reopen. However, this benefit has a shelf life and is set to expire July 26th. This means that starting next week millions of Americans will see their unemployment benefits drop by potentially more than half. For example, in some states, unemployment will drop to it’s typical amount of less than $100/week. This large drop in income coupled with a tight job market can quickly become an increase in debt, evictions, and foreclosure crisis. Everyone is waiting to see what Congress will do, but many don’t expect the $600/week to last or be extended. Fingers crossed that it will.
Evictions Will Be On The Rise
To help stabilize families during this crisis the CARES Act also put a hold on evictions for 120 days due to non-payment. This protection however expires on July 25th. This means that on this date landlords can start to send eviction notices for non-payment. Landlords still need to give 30 days notice, but this notice starts the clock for many families that haven’t been able to pay rent during this crisis.
Taxes Are Now Late
Another COVID benefit Congress provided was extending the tax deadline from April 15th to July 15th. This deadline was not extended further so business and personal taxes were due last week and are now considered late if not paid. If you haven’t paid you can expect a $300 late charge and occurring interest on your balance due. If you weren’t able to pay make sure you contact the IRS to get on a payment plan. That is the best way to avoid continued fee’s.
While COVID continues to cause financial hardship for millions, these benefits have provided a safety net not just for families but for the economy as a whole. Now is a critical time for Congress to act. Remember, during times like these, what helps your neighbor also uplifts you as well. We are all connected and in this together.
Stay safe and reach out if I can help with any of your financial questions.
~ Tiffany, Your Money Coach