10 Legal Ways to Get Free Money from the CARES Act!

This is a special CARES Act Breakdown to help online businesses to understand the top 10 benefits that are available under this new law that went into effect on March 27, 2020.

1:02 - The Paycheck Protection Program. This is a way for businesses to access a forgivable loan to assist with paying their payroll, rent, utilities and debt services. You may qualify for 2.5 times your average monthly payroll.

2:40 - Economic Injury Disaster Loans. The CARES Act expands the number of businesses that will qualify for these loans, and will provide an advance of $10,000 that does not need to be repaid.

3:44 - Unemployment Benefits. Under the new Pandemic Emergency Unemployment Compensation plan, you may qualify for an additional $600 per week in Federal Benefits through the end of July.

5:50 - Stimulus Checks. This is the most hyped portion of the Bill. Individuals who make less than $75,000 and married couples that make less than $150,000 will receive $1,200 per person, plus an additional $500 per child.

7:19 - Mortgage Forbearance. You can request a forbearance on your mortgage of up to 90 days. But make sure you contact your lender first BEFORE you stop paying!

8:58 - Rent Forbearance - There is a moratorium on evictions for certain types of mortgages for up to 120 days. However, just like with the mortgage relief, you must contact your landlord and talk to them about this before you stop making payments.

10:12 - Increased Charitable Deductions. You can deduct up to $300 in donations to charity in addition to taking the standard deduction in 2020.

10:56 - Changes to the Health Savings Accounts. Beginning on January 1, 2020, over the counter medication is now an qualified medical expense, as are menstrual products. Also, the deadline to contribute for 2019 has been extended to July 15th.

Click here to sign up with a HSA through Fidelity: https://www.fidelity.com/go/hsa/why-hsa

13:34 - Retirement Withdrawals. You can withdraw up to $100,000 from your retirement funds penalty free for 2020 and pay the tax on that withdrawal over the course of the next 3 years. Alternatively, you can pay the money back over the next 3 years. Also increases the amount that can be taken as a loan against your 401(k) and delays repayment on existing loans. Finally, eliminates required minimum distributions (RMD's) for 2020.

15:41 - Student Loan Deductions. Your employer may pay up to $5,250 towards your student loans in 2020 and take that as a deduction, while you as employee do NOT need to report that payment as taxable income.