The Ultimate Freelancer’s Guide to the C.A.R.E.S. Act: New Funds and Benefits

Intro

Important Links

Section 1: Your Stimulus Check

Summary

Eligibility

  • Be a U.S. resident or citizen
  • Have an adjusted gross income under $75,000 ($112,500 for head of household and $150,000 married) — this is based on your most recent PERSONAL tax return (2018 or 2019 if you’ve already filed this year). This number can usually be found on line 8b of your tax return (IRS Form 1040).
  • Not be a dependant on someone else’s tax return
  • Have a work-eligible Social Security Number

How to get it

FAQ

Additional Resources

Section 2: Unemployment Insurance for Freelancers

Summary

  • Pandemic Unemployment Compensation (PUC)- We’ll call this one “The Money Boost”
  • Pandemic Emergency Unemployment Compensation (PEUC) — We’ll call this one “The Time Boost”
  • Pandemic Unemployment Assistance (PUA)- This is “The Eligibility Boost”

Eligibility

  • They have been diagnosed with COVID-19 or have symptoms of it and are seeking diagnosis
  • A member of their household has been diagnosed with COVID-19
  • They are providing care for someone diagnosed with COVID-19
  • They are providing care for a child or other household member who can’t attend school or work because it is closed due to COVID-19
  • They are quarantined or have been advised by a health care provider to self-quarantine
  • They were scheduled to start employment and do not have a job or cannot reach their place of employment as a result of a COVID-19 outbreak
  • They have become the breadwinner for a household because the head of household has died as a direct result of COVID-19
  • They had to quit their job as a direct result of COVID-19
  • Their place of employment is closed as a direct result of COVID-19
  • They meet other criteria established by the Secretary of Labor

How to get it

FAQ

Additional Resources

Section 3: Business Tax Changes

Summary

  • Employers, including the self-employed, can delay the payment of the employer portion of the Social Security payroll tax for the remainder of the year and pay back the liability over the next two years.
  • You may be able to get a 50% tax credit on wages (up to $10,000 per employee) for employees that you retain during the COVID-19 crisis if your business was shut down in full or in part. This is to encourage businesses to keep paying employees.
  • Businesses that have net operating losses (NOLs) have some limitations relaxed. If your business had an NOL in a tax year beginning in 2018, 2019, or 2020, that NOL can now be carried back five years instead. This may improve cash flow and liquidity for some businesses. Pass-through businesses and sole proprietors will also be able to take advantage of the relaxed NOL limitations.
  • Businesses that were due to receive corporate alternative minimum tax (AMT) credits at the end of 2021 can instead claim a refund now, in order to improve cash flow during the COVID-19 emergency.
  • On your personal tax return, there’s a new deduction for up to $300 for charitable contributions. Previously, charitable contributions were only available for people who itemized their deductions. This new deduction is for you if you use the standard deduction formula.

Eligibility

How to get it

Additional Resources

Section 4: Student Loan Relief

Summary

Eligibility

How to get it

FAQ

Additional Resources

Section 5: Other Relief

Summary

Additional Resources

Section 6: New Loans for Your Business

Summary

  • EIDLs are now also available to Tribal businesses, cooperatives, non-profits, and individuals operating as sole proprietors or independent contractors.
  • EIDLs can be approved by the SBA based solely on an applicant’s credit score.
  • EIDLs that are smaller than $200,000 can be approved without a personal guarantee.
  • Borrowers can receive a $10,000 emergency grant cash advance that can be forgiven if spent on paid leave, maintaining payroll, increased costs due to supply chain disruption, mortgage or lease payments or repaying obligations that cannot be met due to revenue losses.

Eligibility

How to get it

FAQ

Additional Resources

Section 7: Retirement Account Withdrawals

Summary

Eligibility

  1. are diagnosed with COVID-19;
  2. have a spouse or dependent diagnosed with COVID-19;
  3. experienced adverse financial consequences as a result of being quarantined, furloughed, laid off, having work hours reduced, being unable to work due to lack of child care due to COVID-19, closing or reducing hours of a business owned or operated by the individual due to COVID-19; or
  4. other factors as determined by the Treasury Secretary.

How to get it

Additional Resources

Have Questions?

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Abbey Woodcock

Abbey Woodcock

Been a direct response copywriter since 7th grade when I wrote a 30-page sales letter asking my crush to the dance. freelancecoop.org