Financial Assistance During Coronavirus: Resources for A New Normal

If you could go back in time, what would you do differently to avoid needing financial assistance during coronavirus? I would probably go back 10 or 15 years to start saving an emergency fund earlier. Then create a more realistic budget that would allow me to have saved more money by now. I’d probably make an obsessive habit of stocking my home with safe disinfecting products. And most importantly, always pay attention to what I’m touching, and wash my hands after being out in public. 

Imagine what you would do differently if you could get a do-over.

Unfortunately, you can’t go back in time. Even if Marty McFly loaned you his DeLorean, you couldn’t use it to prevent this pandemic from creating financial hardship. But programs are in place to help if you’re having financial troubles.

If you need financial assistance during the coronavirus crisis, the $1,200 stimulus check, student loan payment waiver, and other resources can help reduce financial hardship for lower-income earners.

COVID-19 has dealt a blow to many people around the world. Most affected are people living on low incomes. According to the March 13, 2020, Marist Poll, the Coronavirus has financially affected 11% more people with incomes under $50k than those with incomes over $50k. I’m sure that number has increased since then. This places lower-income earners, who already live paycheck to paycheck, in situations where they are without the income that barely kept them afloat.

This has affected the people I love. It has marginally affected me financially but greatly affected me emotionally. I hope this information will help you get through this crisis, bounce back when it’s over, and be financially and educationally prepared if something like this happens again.

• IRS Stimulus Check
• Federal Student Loan Forbearance
• Unemployment Insurance
• Welfare/Public Assistance
• Food Banks (Food Pantry)
• Anxiety Relief

Congress has created several programs to help lower-income earners live more in balance with standard needs and requirements. The President signed the CARES Act (Coronavirus Aid, Relief, and Economic Security Act) into law on March 27th. The bill will help provide financial assistance in the wake of the Novel Coronavirus crisis. This has opened additional doors to provide emergency support for those who the COVID-19 shutdowns have affected financially.

Below are a few of the programs that you can access to help supplement reduced income and manage your regular expenses. 

You’ve already given; this is your time to receive.

IRS Stimulus Check

Because of the signing of the CARES Act, every taxpayer with an adjusted gross income below $75,000.00 per year is eligible for a tax-free payment of $1,200.00 for single filers and $2,400.00 for those who filed jointly with their spouses. Families with qualifying children will receive an extra $500.00 per child.

If you’ve already filed your taxes for this year, you’re good to go. You won’t have to do anything else to receive this payment. Currently, it’s only a one-time payment. Hopefully, that will change.

If you have not filled your 2018 or 2019 taxes, please file now.

Taxpayers who file simple tax returns can go to The United Way’s My Free Taxes page at https://www.myfreetaxes.com. Don’t worry. It’s not a scam. I’ve been using it for years. The link eventually takes you to the partnering H&R Block online filing page. Make sure that you sign in through this link. And when you are using the site, it should always say “My Free Taxes” on the top. This will allow you to file both Federal and State taxes in the same session. They both will be free as long as it’s a simple tax return.

This site may contain affiliate links for which I may be compensated for at no additional cost to you. (see disclaimers)

Don’t fall for the upsells though unless you have a complicated return. Once you get started filing, there will be several upsells. If you are filing a simple return, just say no thank you and continue. For those who have more complicated tax returns, you can still use the site to file. There will just be a fee. If you have trouble with the site or any questions, call H&R Block at 800-472-5625. You can also call the IRS at 1-800-829-1040 or go to https://www.irs.gov/help/telephone-assistance for additional numbers. They can help if you have tax-related questions the H&R Block rep may not be able to answer.

The IRS also has Free Income Tax filing options on their site. It’s a bit more complicated. You may have to go to a different link to file your state taxes but it’s free and it works.

The IRS began distribution of the Economic Impact Stimulus payments on Friday 4/10/20. The payment will provide assistance with financial difficulties amid the coronavirus pandemic. Filers who have their banking information on file with the IRS for direct deposit are processed first. They should start seeing the deposit as early as April 15th.

Unfortunately, if you did not request direct deposit of your tax refund, you may have to wait longer to receive your stimulus check.

If you are someone who still prefers to receive your tax refund check in the mail, you are not living in the reality of today. Physical checks, just like faxing, are fast becoming outdated systems and holding on to these dead arts may only hold you back from progress. We may one day need to let those go. The world has gone digital. Don’t be left behind in the analog world—especially if it prevents you from having the same benefits as others.

You may still be able to add your banking information online soon. The IRS is creating a portal where you can check the status of your payment to see when it’s coming. That site should be up by April 17th. Check the IRS: What You Should Know page for updates. When they have launched the portal, that’s where you will also be able to enter your banking information for direct deposit to speed up your stimulus payment.

Federal Student Loans

I was checking my finances and couldn’t figure out why my student loan payment had not yet posted. So I went to their site and saw that they changed my interest rate to 0%. My account was also in forbearance. No payment was due until September.

At first, I started jumping up and down and saying, “Yay!!!! I don’t have to pay my student loan!” Then reality set in and I looked at the fine print. Eventually, I still have to pay the bill but my payments are on hold for now. 

I was ok with the information in the fine print. There was nothing sketchy like interest accrued until September and due afterward. What made me even happier was that it will benefit so many who are struggling right now. The CARES Act is actually going to help people get assistance with financial problems caused by the coronavirus shutdowns.

• Section 4513 of The CARES Act offers temporary relief for Federal Student Loan borrowers. It will allow the waiver of interest on Federal Student loans. 
• Affective March 13, 2020, through December 31, 2020, lenders will not require Federal student loan payments. Interest will not accrue between those dates.

Tips:
Call your lender to confirm that they will not charge interest prior to December 31, 2020. Also, make sure the loan will not accrue interest during that time that gets charged afterward. Make sure you confirm this because sometimes lenders are scandalous.

Unemployment Insurance

I’m grateful to be able to work from home but not all of my loved ones can. It saddens me to hear how difficult it is to get help from these programs. They should be there for us in times like this. I hope that people who suffered a reduction in pay because of the coronavirus shutdowns get the financial assistance they need to keep from enduring irreparable hardship. The bill has already mandated an additional $600.00 in payment for those receiving unemployment benefits during this crisis.

Unemployment benefits in the US are largely funded by our tax dollars. To qualify, you must be involuntarily unemployed—fired. This means that you’re, in most cases, not eligible if you quit your job because you didn’t like it. There may be an exception if you can prove that you quit because you were being harassed or treated unfairly.

Each state has its own rules for qualification so please check your local state’s website for the application process. There are many sites that have links directing you to file. Some appear to be legitimate places to file but don’t fall for the scam sites. 

Make sure the site’s URL has your state name in it and ends in, .GOV. No website can use the .gov extension unless it’s a government agency.

I live in New York so my state’s site is nyc.gov. Be safe and pay attention to domain names and the URL before trusting a site with your personal identification information.

Tips:
If you’re applying by phone, prepare to spend hours, if not days, repeatedly hitting redial until your fingers are blue. Even if you’re able to apply online there is a second part that may need to be completed by phone. If your Mac chooses not to acknowledge that Internet Explorer still exists, you will most likely be applying by phone.

Their online system’s browser preference is antiquated and their phone system is perpetually busy. When you finally get through, there is no option to hold for a representative. That’s even more nerve-racking. 

After calling 17,000 times, you finally get through and enter all of your credentials. You cheer but then are suddenly transferred to a line that is busy. If then you’re politely told by the automated system to try your call again later—don’t give up! 

I’m not saying this just to talk trash, this has actually happened. It’s ridiculous but don’t give up.  Bandage your fingers and start dialing again. You paid your tax money into these programs and shouldn’t have such a difficult time getting help in hard times. Never give up. 

On a good note, I recently heard that there is now a notification. Once you have finished part one of the application process, someone will call you back instead of you calling them. Hopefully, that pans out.

If you live in the New York area, check NYC.gov to see if you’re eligible for COVID-19 Related assistance. If you’re not from NYC, check the local government’s website for your city and state for details.

Welfare/Public Assistance

Public Assistance, also known as Welfare or Temporary Assistance for Needy Families (TANF), is a program for individuals and families struggling to make ends meet. Welfare and other government-assisted benefits programs was designed to help you stay afloat when you’re not able to earn a sufficient income to support yourself and your family.

This aid can provide money for food, housing, health care, and other basic living expenses to decrease financial hardship. Contact your local department of social services or the Office of Family Assistance (OFA) to find out how and where to apply for public assistance benefits in your area. 

As a taxpayer, you are helping your government financially. Don’t feel any type of way about reaching out to them for reciprocation. You need financial assistance if the coronavirus shutdown reduced your wages. You’ve already given, this is your time to receive.

Food Banks

When your income has been reduced, that will limit your budget for food. Create a new budget. Focus mostly on buying items that are filling, nutritious, and not too expensive for your new budget. You can supplement grocery items you are able to buy with those you can get from your local food pantry.

Do a search on the Feeding America website to find your local food bank. Enter your zip-code and state and look for food pantries in your area. Stock up on items that can help you to stretch the meals for you and your family.

Anxiety Relief

These are stressful times, and stress can create its own set of illnesses. Job loss, income reduction, sick family and friends, and shortages of necessary supplies are some of the stresses we’re facing in this crisis. We have so many things to focus on that are out of our control. It becomes so overwhelming that we don’t know where to turn. 

This is a good time to reach out to friends and family members who are not living within your household. Check up on loved ones and chat about things that bring you joy.  You can text, send IMs and DMs, FaceTime, or have a virtual happy hour on Zoom. 

Try searching for movies and videos that will make you laugh. You can find some on free platforms like YouTube, Pluto, Crackle, and Tubi. 

Meditation apps like Calm and Headspace are good to get your out of your own head. Those are the two I use. When you’re freaking out, take a moment to just breathe. It can help to lessen anxiety. I also keep a journal to write out my feelings and ideas. 

Sometimes, when I read an old entry, I find full-blown plans that I never executed. Things I had planned to do or imagined happening in my future but never accomplished. Reading things you wrote days, weeks or even months before can trigger action on those plans. It can be a great reminder to move forward with ideas or disregard them.  Reflecting on your written out thoughts and ideas can help take your mind in new directions. It can take you away from stressors that weigh you down and keep you from excelling.

Seeking Help:
Victims of the coronavirus crisis not only need financial resources but also emotional assistance. If you’ve tried everything and still can’t escape those dark spaces, contact a local or national health hotline. https://www.mentalhealth.org provides access to programs that deal with stress management and emotional wellness. They have a live chat option that could help get you through a rough patch in the day. 

The most important thing is that you get through this. Access the financial tools and resources and get assistance with coronavirus-related hardship. This will help you get back on track to creating your ideal reality. 

______________________

I don’t know how long this quarantine will last. There’s no telling how many people will be negatively affected either. But I’m hoping that everyone will be able to hang in there until the shutdown is over. Then we can get back to what will now be our new normal. There’s absolutely no way everyone is going to just go back to the way things were before the virus hit. 

This virus will have everyone thinking differently when it’s over. Hopefully, there will be a surge of people working towards being more financially, environmentally, and humanly responsible.

How has this crisis affected you and what are you doing to prepare for your return to a new normal?