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CARES Act

Monday’s need-to-know money news

June 29, 2020 By Liz Weston

Today’s top story: How new grads can handle 3 essential post-college questions. Also in the news: A new episode of the SmartMoney podcast on money goals and bank bonuses, the possibility of another stimulus check, and everything that goes away when coronavirus benefits end in July.

How New Grads Can Handle 3 Essential Post-College Questions
The real world is a bit different these days.

SmartMoney Podcast: Setting Money Goals at Milestone Birthdays, and Bagging Big Bucks with Bank Bonuses
Use your big birthday to set a new goal.

Is Another Stimulus Check Coming?
Maybe.

Here is everything that goes away when coronavirus benefits end in July
Start planning ahead for changes.

Filed Under: Liz's Blog Tagged With: banking bonuses, CARES Act, college graduates, Coronavirus, money goals, SmartMoney podcast, stimulus check

Tuesday’s need-to-know money news

May 12, 2020 By Liz Weston

Today’s top story: 5 questions to ask before canceling your travel credit card. Also in the news: Think it’s bad now? Wait until hurricane and fire seasons start, 8 types of credit card relief you can ask for, and tomorrow is the deadline to receive your Coronavirus payment by direct deposit.

5 Questions to Ask Before Canceling Your Travel Credit Card
You might hurt your credit score.

Think it’s bad now? Wait until hurricane and fire seasons start
Mother nature doesn’t care about your pandemic.

8 types of credit card relief you can ask for
From delayed payments to credit line increases.

Tomorrow Is the Deadline to Receive Your Coronavirus Payment by Direct Deposit
Get your information in.

Filed Under: Liz's Blog Tagged With: CARES Act, Coronavirus, Credit Cards, fire season, hurricane season, IRS, stimulus payment, travel credit cards

Tuesday’s need-to-know money news

May 5, 2020 By Liz Weston

Today’s top story: For self-employed, filing for unemployment benefits is getting easier. Also in the news: How to pay rent when you can’t afford it, what to keep in mind with credit card payments during the pandemic, and how to find out what you owe the IRS.

For Self-Employed, Filing for Unemployment Benefits Is Getting Easier
What you need to know before filing a claim.

How to Pay Rent When You Can’t Afford It
Exploring your options.

COVID-19: What to Keep in Mind With Credit Card Bill Payments
Reach out to your card issuer.

Use This IRS Tool to Check What You Owe Them
Making sure you’re up-to-date.

Filed Under: Liz's Blog Tagged With: CARES Act, Coronavirus, Credit Cards, IRS, rent, Taxes, tips, unemployment

Q&A: How to make ends meet if the coronavirus shutdown has reduced your income

May 4, 2020 By Liz Weston

Dear Liz: My husband’s salary was cut by more than 50%. While we are thrilled he is still employed, this deep cut will make it very challenging to pay all bills for our family of four. We don’t qualify for the $1,200 relief checks based on our 2019 taxes, which have already been filed. He is ineligible for unemployment because he’s salaried and his hours haven’t been cut. Are there other options for financial support or am I misinterpreting the government options?

Answer: You may have a few options for making ends meet during this trying time.

The first is mortgage forbearance. If you have a federally backed mortgage and have been affected by the pandemic, the Coronavirus Aid, Relief and Economic Security (CARES) Act gives you the right to forbearance for nearly a year if you request it. You can ask for 180 days initially as well as an additional 180-day extension.

Most mortgages are federally backed, including those lent or guaranteed by Fannie Mae, Freddie Mac, the Veterans Administration, the Federal Housing Administration and U.S. Department of Agriculture. If you have one of these mortgages, you won’t have to pay back the skipped payments all at once. You could spread out the payments or tack them on to the end of your loan.

To find out if you have a federally backed mortgage, and to request forbearance, contact your mortgage servicer — the company that accepts your payments. Be prepared to wait because lenders are overwhelmed with requests right now.

Even if you don’t have a federally backed loan, your mortgage lender is likely to have some forbearance options — as does your credit card issuer, your car loan company and any other lender you owe. Make sure you understand how each program works and how you would repay the skipped payments. In most cases, your balances will continue to accrue interest, but the programs could give you some breathing room while you wait for better times.

Filed Under: Coronavirus, Q&A Tagged With: CARES Act, Coronavirus, q&a

Q&A: Coronavirus aid law lets you more easily tap retirement savings. That doesn’t mean you should

April 27, 2020 By Liz Weston

Dear Liz: You recently mentioned that a person can withdraw money from their 401(k) and spread the taxes over three years. If 401(k) is paid back, they can amend their tax returns to get those taxes refunded. Because of some major home repairs, I asked our accountant about this before we proceeded. He said that he hasn’t read anything official about the above. Would you please provide where you obtained your information, so we can decide if that’s an avenue we can use?

Answer: It’s possible you had this conversation before March 27, when the Coronavirus Aid, Relief, and Economic Security (CARES) Act became law.

Otherwise, it’s kind of hard to imagine an accountant anywhere in the U.S. who hasn’t heard of the emergency relief package that created the stimulus checks being sent to most Americans, as well as the Paycheck Protection Program’s forgivable loans for businesses and the new coronavirus hardship withdrawal rules for 401(k)s and IRAs.

Those rules allow people who have been affected financially or physically by COVID-19, the disease caused by the novel coronavirus, to get emergency access to their retirement funds if their employers allow it.

Even if you do have access to such a withdrawal, you should consider other avenues first.

The income taxes on retirement plan withdrawals can be substantial, even when spread over three years. Perhaps more importantly, you probably would lose out on future tax-deferred returns that money could have earned because few people who make such withdrawals will be able to pay the money back.

A home equity loan or line of credit is typically a much better option for home repairs, if you can arrange it.

Filed Under: Coronavirus, Q&A, Retirement, Taxes Tagged With: 401(k), CARES Act, Coronavirus, q&a, Retirement, Taxes

Wednesday’s need-to-know money news

April 22, 2020 By Liz Weston

Today’s top story: What to do if you can’t pay for insurance due to Coronavirus. Also in the news: 3 effective ways to get airlines and hotels to bend their rules, a new episode of the SmartMoney podcast on spring cleaning your finances, and what the CARES Act means for public service student loan forgiveness.

What to Do if You Can’t Pay for Insurance Due to Coronavirus
Get in touch with your carrier immediately.

3 Effective Ways to Get Airlines and Hotels to Bend Their Rules
Twitter vs. phone vs. email.

SmartMoney Podcast: ‘How Should I Spring-Clean My Finances?’
Three steps to tidy things up.

What the CARES Act Means for Public Service Student Loan Forgiveness
Document everything.

Filed Under: Liz's Blog Tagged With: airlines, CARES Act, Coronavirus, hotels, Insurance, public service student loan forgiveness, SmartMoney podcast, spring cleaning, tips, travel changes

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