Economic Impact Payments Are Coming
On March 30, 2020, the U.S. Treasury Department announced that distribution of Economic Impact Payments would be coming and millions of Americans have already received deposit notifications if their account information is on file with the IRS. Most of these will be distributed automatically, with no action required for eligible recipients. Automatic IRS payments will arrive via direct deposit ACH, while paper checks recipients may wait for a longer time.
Based on your 2018 or 2019 tax return, whichever has been filed most recently, a payment will be processed by:
Using the bank account information already provided to the IRS within the next three weeks
May be issued at a later date if no bank account information is on file with the IRS.
Refer to IRS.gov/coronavirus for eligibility details.
Checking your payment status, updating information
Refer to IRS.gov/coronavirus ;for eligibility details. Use the IRS’ Get my payment application to verify your eligibility, check the status of a payment that may be in processing, or to provide banking account information to receive a payment by direct deposit rather than a paper check.
Watch for potential fraud
As millions of Americans are beginning to receive economic impact checks from the federal government, scammers are intent on trying to get their hands on that money. Here are some things to watch out for:
Phony IRS emails and texts:
Remember that the IRS will not call to ask you to verify or provide your financial information to receive your payment faster. That also goes for emails, texts, website and social media posts. Watch for words like “rebate,” “stimulus check” or “stimulus payment.” The official term is “economic impact payment.” Visit IRS.gov for the most up-to-date information.
If you receive a paper “check” in the mail now, it is most likely a fake as it will take the Department of Treasury a few weeks to mail the legitimate checks to taxpayers.
“Verification” scams and false tax returns
Watch out for scammers trying to get you to sign over your check to them or get you to “verify” your filing information. Your personal information could then be used to file false tax returns.
Targeting retired Americans
Payments are being sent automatically to retirees, so no additional action or information is needed on their part. No one from the IRS will contact you by phone, email, mail or in person asking for any kind of information to complete their economic impact payment.
Frequently Asked Questions About the Credit Union and the CARES Act
The Coronavirus Aid, Relief and Economic Security (CARES) Act is a bipartisan response to the Coronavirus crisis. The $2 trillion coronavirus economic stimulus bill was signed into law on March 27, 2020. This legislation is aimed at providing relief for individuals and businesses that have been negatively impacted by the coronavirus outbreak.
This is a reference guide with Questions & Answers regarding the CARES Act and how it impacts Credit Union members and their accounts. For additional information about our response to COVID-19, please visit AACreditUnion.org/COVID-19.
How does the CARES Act apply to my mortgage loan with the Credit Union ?
The Act offers certain borrowers impacted by the COVID-19 pandemic access to forbearance of mortgage obligations on federally backed mortgage loans. These are loans purchased or securitized by Fannie Mae or Freddie Mac. Since your Credit Union mortgage is not a Fannie Mae or Freddie Mac loan, this does not apply to you.
Can I still defer my mortgage payment even though I do not have a Fannie Mae or Freddie Mac loan ?
You can submit your request for a deferral with your explanation why you need relief by completing this form electronically and we'll contact you with details.
STUDENT LOAN QUESTIONS
How does the CARES Act apply to my student loan with the Credit Union?
The Act offers certain borrowers impacted by the COVID-19 pandemic access to forbearance of federal student loan obligations. Since your Credit Union student loan is not a federal loan, this does not apply to you.
Can I still defer my student loan payment with the Credit Union?
Education Lines of Credit were automatically deferred on March 24, 2020. Some loans did not qualify due to the standing on their account. If you need to discuss deferral and repayment options for your student loan serviced by University Accounting Services (UAS) to keep your account in good standing, please log in to your UAS loan account and send a message or call (800) 723-2210 to speak with a servicing agent.
TRADITIONAL IRA QUESTIONS
How does the CARES Act apply to my IRA with the Credit Union ?
The Act waives the required minimum distribution (RMD) rules for IRA owners for 2020. Let us know if you want to cancel any future automatic distributions you have scheduled with us.
• This waiver also applies to individuals who turned 70 ½ in 2019, but did not take their first RMD before January 1, 2020.
• You can now make IRA contributions for tax year 2019 through July 15, 2020.
• Individuals may qualify to request a coronavirus-related distribution (CRD) and withdraw funds from an IRA without paying the 10 percent early distribution penalty tax. The Act defines the qualifications and provisions for repayment of the CRD over a period of time.
Note: For additional questions regarding your traditional IRA, please contact your Tax Advisor.
SMALL BUSINESS LOAN QUESTIONS
How does the CARES Act apply to my small business loan with the Credit Union?
The Credit Union is not offering the SBA’s Paycheck Protection Loan Program. However, we are providing the Small Business Administration’s contact information to members for continued assistance. Information on your relief options can be found here: Information on Coronavirus Relief Options
Important websites and numbers
Application customer service center phone number: (800) 659-2955
CREDIT REPORTING QUESTIONS
How does the CARES Act affect how the Credit Union reports my payment status to the credit bureaus?
The Act includes a temporary amendment to the Fair Credit Reporting Act (“FCRA) which requires a creditor to report an obligation as current, even if the creditor has granted a loan modification or deferral to a consumer affected by the coronavirus. Although the Credit Union has deferred your consumer loan payment, we will still report your credit status as current, as long as you continue to make your payments by the due date.