Economic Impact Payment or Stimulus Payment

The IRS started sending stimulus checks in April. Taxpayers that filed their 2018 and 2019 returns and most seniors and retirees have automatically been issued the payments without further action on their part.

For those eligible to receive the payment but have not received it, you can fill out eligibility forms on the IRS website https://www.irs.gov/coronavirus/economic-impact-payments

Coronavirus Payment Assistance

Credit card companies offer payment assistance and payment deferment for a month for those that are affected by the business closures due to the coronavirus outbreak. Some have options to request the deferment online, others you must call. The payment deferment makes the minimum payment to zero, so you are not required to make a payment this month. However, it does not remove the interest.

To request the payment deferment from Capital One, call 800.227.4825. They are friendly and willing to help.

For payment assistance from Chase, go to https://www.chase.com/paymentassistance

American Express offers a deferment on both minimum payment and interest. Their financial hardship assistance number is 866.703.4169

Coronavirus and U.S. stock market

The US stock market has been deeply affected by the Coronavirus outbreak in the USA, as it happened to the Chinese stock market a few months ago when the outbreak happened. The global outbreak, officially designated a pandemic earlier this week by the World Health Organization, has triggered widespread cancellations for major sports and cultural events and corporate conferences, travel restrictions, product shipment delays, and impelled universities across the country to halt in-person instruction.

Amid these concerns, the Federal Reserve applied a half-point interest rate cut last week and announced an additional injection of $1.5 trillion in liquidity operations, along with purchases of Treasury securities across the yield curve. Additionally, in an effort to help and maintain the strong economy, President Donald Trump proposed payroll tax cuts and announced that billions worth of low-interest loans will be available to small and mid-sized businesses getting hit by the coronavirus.

Tax Credits and Deductions for Individuals

Tax credits are amounts that you can subtract from the amount of tax you owe.

There are two types of tax credits.

  • Nonrefundable
  • Refundable

The tax credits for individuals can also be divided as:

  • Family and dependent credits
  • Income and savings credits
  • Homeowner credits
  • Health care credits
  • Education credits

Individual tax deductions are amounts that you subtract from your income before you figure out the amount of tax you owe.

Like tax credits, tax deductions can be of different types:

  • Work related deductions
  • Itemized deductions (included here are property taxes and charitable donations)
  • Education deductions (student loan interests are classified as education deductions)
  • Health care deductions
  • Investment related deductions

More details can be found on the Internal Revenue Service website