
Since Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act on March 27, you’ve probably been wondering if you’ll be receiving a stimulus check (and when) and if the relief package could help you in other ways. As your ally, we’re here to help with information about this $2.2 trillion relief package and the ways it can potentially impact your finances.
Stimulus payments for individuals and families.
As a part of the CARES Act, the IRS is issuing a one-time cash payment based on the income you reported on your most recent tax return. So, if you filed already for 2019, this return will be used to determine your eligibility — if not, the IRS will reference your 2018 return.
Single filers who earn $75,000 or less in adjusted gross income will receive $1,200. Couples who filed jointly and earn $150,000 or less will receive $2,400. And those with children are eligible to receive an extra $500 per child. If you make more than these thresholds, your payment will be reduced by $50 for every extra $1,000 of income.
Some people have already received their payments as a direct deposit. If your direct deposit information was not listed on your tax return, you’ll receive your payment as a paper check in the mail. You can use this website to track your return and enter your direct deposit information if you prefer.
Tax deadline extension.
The deadline for filing and paying your federal taxes has been extended by three months, from April 15 to July 15. That means you have some extra time if you owe money. But if you’re expecting a return, you may want to file sooner — that way you can take advantage of your refund sooner.
While many states have adjusted their tax deadlines to align with the federal government, not all extensions were the same. Make sure you check your state’s filing and payment deadline to know when you must submit your return.
IRA contribution deadline extension.
Yes — the deadline for making contributions to your individual retirement account (IRA) has also been extended to July 15. So you have an extra three months to fund your IRA and get closer to the maximum contribution of $6,000 if you’re under 50 years old, or $7,000 if you are 50 or older.
Changes to unemployment benefits.
The CARES Act increases unemployment benefits as well as expands who is eligible for assistance. For example, those who are self-employed, contractors, freelancers, or gig economy workers typically aren’t eligible for unemployment benefits. Now, through the Pandemic Unemployment Assistance program, these workers can receive temporary assistance for 39 weeks.
If you have filed for unemployment, you’ll continue to receive payments from your state, as well as an additional $600 per week from the federal government until July 31, 2020. The CARES Act also extends the availability of unemployment insurance by 13 weeks, from 26 to 39 weeks for certain workers.
Increased access to retirement account funds.
Typically, if you make withdrawals from your IRA or 401(k) before you are 59 ½, you will incur taxes and a penalty. Based on the CARES Act, you can now withdraw up to $100,000 penalty-free for certain expenses and financial setbacks related to the COVID-19 pandemic (think: if you have COVID-19 healthcare costs, if you’re unable to work because of the virus, if you can’t find childcare, or if you’re facing other adverse financial consequences because of the current situation).
If you make a withdrawal, it will be taxed — but if you repay the funds to your retirement account within three years, your tax obligation will be waived. If you can’t return the money within that time frame, your taxes will be spread over three years, from 2020 to 2022.
Remember: While you may be able to make early distributions from your retirement fund without penalty, you’ll want to weigh the pros and cons first. Taking money out could be disadvantageous to your long-term retirement financial health, so you might want to consider all your other possible options before doing so.
Because Ally Invest does not offer tax or legal advice, make sure to consult with a tax and legal professionals and/or your financial planner to make sure you understand all of the benefits and drawbacks of withdrawing money from your retirement accounts in times of need.
Student Loan Relief
If you are worried about paying back your student loans during this difficult time, the CARES Act can help lessen the burden. That’s because for eligible federal student loan borrowers, payments have been deferred and interest has been reduced to 0% through September 30, 2020. So, if need be, you may be able to pause payments for the next few months.
During this uncertain time, these are just a few ways you may be able to find some financial help from the federal government’s CARES Act. But remember, lots of financial services providers (like banks, creditors, and lenders) are offering their own relief programs as well to help you manage your money as best you can. And at Ally, we’ll be here to help you every step of the way.
Ally is dedicated to all our customers during this crisis. Here’s how we’re doing our part.
Comment on this article
Comments
Katherine c. on May 8, 2020 at 2:08pm
Please note I received a letter that my deferment on account was excepted till july 28th. I did have my car payment lowered to 301.60 because I am unemployed and getting no unemployment, just please verify. Thank you
Carla P. on May 8, 2020 at 2:30pm
When My Husband was having heart problems ,Ally was able to lower our Payment and then when this Virus Hit ,Once again They helped us out by Deferring a couple Payments !
Sonia V. on May 8, 2020 at 3:27pm
I have no work. Have no idea how I will pay the next months because I’m self employed and work as a catholic singer at church and the church is closed.
Adrian R. on May 8, 2020 at 3:42pm
Thank you for sending this information, actually Two day ago I call to Ally financial in reference to my auto loan finance interest rate(9.6%). Asking information if I can refinance my loan with better interest rate , that will be real help. It unfortunately the representative told me Ally financial can’t do any refinance.
Simone G. on May 8, 2020 at 4:08pm
Great advise
Ally on May 8, 2020 at 4:09pm
Thanks for reading, Simone.
Stephen B. on May 8, 2020 at 4:25pm
We bought our 2020 Kia Sportage S because well out for test drive our car was damaged. So I made them agree for certain things when bought car. I never thought looking over papers they would chest is over 2,000 on extended warranty which 10 yr 100,000 mi comes with car. Like our 2,000 back from them. Also think payment was told be what other one was 520 mo not 740 mo. We went to have our winter tires taken off where suppose to send a vehicle in exchange for taking ours but we're going to leave car in yard but couldn't touch not under there insurance. Very upsetting canceled appt took somewhere else. So kind of unhappy Stephen Barnier Thomas Keefe
Katrina B. on May 8, 2020 at 5:01pm
Great information but for those of us that aren’t working how do we make car loan payments off of unemployment. Most of us will need our loans cut in half. The reality of this is very real & scary. We need much more help!!!!!!!!
Norma H. on May 8, 2020 at 5:17pm
Even tho y’all have helped by waiving my payments, temporary, but the finance charges are continuing to add up, which will make it harder if & when I’m able to return to work. I don’t qualify for unemployment.
Dianna D. on May 8, 2020 at 5:17pm
I understand I still have my note to pay I am asking for more time I have yet to receive my stimulus payment. Please contact me and let me know what else may I do. I also would like to get a cheaper note and or another vehicle.
Ally on May 8, 2020 at 5:19pm
Hi Dianna, you can learn more about how to get started here: https://www.ally.com/coronavirus-response. You can also defer your Auto payment online at ally.com/auto – just log in with your username and password.
Myra H. on May 8, 2020 at 5:20pm
Thank you !!!!
Jermaine B. on May 8, 2020 at 5:21pm
I haven’t received any stimulus money an I’ve been out of work since March 25 , an no unemployment.
Glenda H. on May 8, 2020 at 5:34pm
Are y’all going to be doing more than 3 deferral s on accounts due to pandemic crisis?
Ally on May 8, 2020 at 5:35pm
Hi Glenda, you can learn more about our COVID-19 relief efforts here: https://www.ally.com/coronavirus-response.
Victoria R. on May 8, 2020 at 5:38pm
Will there be a possibility to extend the 4 months of deferment for a few more months. This has hit us hard and adding the payment and interest onto the back of the loan has been a life saver for us. Thank you. Victoria
Ally on May 8, 2020 at 5:39pm
Hi Victoria, please give our Ally Auto team a call at 1-888-925-2559 or chat with us online at ally.com so a team member can look into your specific account and advise further.
Marcelo T. on May 8, 2020 at 5:54pm
Very well explained
Ally on May 8, 2020 at 5:55pm
Hi Marcelo, happy to hear you found the article helpful.
Asa J. on May 8, 2020 at 5:56pm
Good evening, Before the the country was alerted to the severeness of the Coronavirus I lost my mother to this disease. Ally was there to help and my family and I very much appreciate your support and help.
Ally on May 8, 2020 at 5:58pm
Hi Asa, we’re so sorry to hear about your mother. We’re happy that we were able to help you out during this difficult time for you and your family.
Michael F. on May 8, 2020 at 6:03pm
all right I'm always going to look to Ally financial in all my needs from now on because they not only help you in good times but they also help you in the bad and understand our situations thank you Ally
Ally on May 8, 2020 at 6:04pm
Hi Michael, we love hearing this. Thank you for being an Ally customer!
Kristin B. on May 8, 2020 at 6:05pm
Very helpful
Ally on May 8, 2020 at 6:06pm
Thanks for reading, Kristin.
Elizabeth on May 8, 2020 at 6:12pm
Thanks so much for your offer in helping with extinction I was scared I wasn’t going to get to pay and lose my car because of your help I was able to pay it just late thanks again
Ally on May 8, 2020 at 6:13pm
Thanks for the comment, Elizabeth. We’re happy we were able to help. ❤
Janie L. on May 8, 2020 at 6:14pm
Thank you for the information. It was very helpful.
Ally on May 8, 2020 at 6:15pm
Hi Janie, thanks for reading.
Crystal D. on May 8, 2020 at 6:17pm
What if I need to defer my car payment longer?
Ally on May 8, 2020 at 6:18pm
Hi Crystal, you can learn more about our COVID-19 relief efforts here: https://www.ally.com/coronavirus-response.
Mary A. on May 8, 2020 at 6:26pm
Thank you, applied for Cares, still waiting; have not received stimulus. Still waiting.
Susanne K. on May 8, 2020 at 6:31pm
Ally has been very helpful throughout this rough time. I would just like to say Thank you. I hope you have heard this more. I am looking forward to making my next payment!!!!
Ally on May 8, 2020 at 6:32pm
Thank you for being an Ally customer, Susanne. ❤
edgar g. on May 8, 2020 at 6:34pm
thanks ally you guys are awesome keeping your clients informed.
Ally on May 8, 2020 at 6:35pm
We’re so happy you found this article helpful, Edgar! Thanks for reading.
Sheila G. on May 8, 2020 at 7:06pm
I want to personally express my gratitude to the team for the extension during this time. Thanks for understanding.
Ally on May 8, 2020 at 7:07pm
Hi Sheila, thank you for the comment and for being an Ally customer.
Javier on May 8, 2020 at 7:48pm
I got no stimulus check,because I have back child support (arrears)which I pay into with every check I get.and I only owed the IRS a couple thousand dollars, which I also payed them off.i am ,and had always payed my taxes. That's why I didn't get a stimulus check,unfair, thanks govenor
Tiffany M. on May 8, 2020 at 8:18pm
Thanks for this valuable information Ally!
Ally on May 8, 2020 at 8:19pm
Hi Tiffany, thanks for reading!
michelle s. on May 8, 2020 at 10:02pm
It was good to know what is going on!!
Adela R. on May 8, 2020 at 10:26pm
Deferman in my account won’t impact my credit Report. Please let me kwow. When will be my next payment. Sincerely, Adela Ramirez
Ruthie K. on May 8, 2020 at 11:44pm
Please Extend my payments till November
Ally on May 8, 2020 at 11:59pm
Hi Ruthie, you can learn more about our COVID-19 relief efforts here: https://www.ally.com/coronavirus-response
Beatrice F. on May 9, 2020 at 1:50am
Very helpful information, Thank you for making it easy to understand the help out here for us struggling.
Ally on May 9, 2020 at 1:52am
Hi Beatrice, thanks for the comment.😊
RAY D. on May 9, 2020 at 3:23am
I NEED A LOAN TO PUT ALL OF MY BILLS TOGETHER.
Ardie J. on May 9, 2020 at 7:07am
Thanks for the information..very helpful
Ally on May 9, 2020 at 7:11am
Hi Ardie, thanks for reading! We love hearing people’s feedback.
Bryan N. on May 9, 2020 at 7:59am
The payment deferral program has been great, to help us get by.
Lillie T. on May 9, 2020 at 8:21am
I truly appreciate what Ally is doing for their customers. Being a high risk individual, this virus have impacted my life more than ever. Ally have made a difference and I am more than grateful with how they reached out to all of their customers. Thank You
Ally on May 9, 2020 at 8:22am
Hi Lillie, thank you for being an Ally customer.
Teresa w. on May 9, 2020 at 2:17pm
This new world of order very scary and nothing of thee above have happen for me yet I had to pay Uncle Sam no tax no stimulus check yet and can’t get through too unemployed I don’t know
Toni on May 10, 2020 at 8:28am
Thank you so much for your help and the information !
Ally on May 10, 2020 at 8:29am
Hi Toni, thanks for the comment. 😊
Dale A. on May 11, 2020 at 2:56am
Ally has been the Best! Things have gotten really tough for me and my family and Ally didn’t hesitate to offer a huge helping hand with my truck payment for 3 months! Wow ! Thank you Ally.
Ally on May 11, 2020 at 2:57am
Thanks for being an Ally customer, Dale.
Charles L. on May 11, 2020 at 3:16pm
was very good to know
Rhonda on May 11, 2020 at 7:51pm
Thank you Ally for giving me this helpful information. I am very happy to be financed with such a great company!
Ally on May 11, 2020 at 8:33pm
Hi Rhonda, thanks for being an Ally customer. 😊
Heidie N. on May 13, 2020 at 12:26pm
I requested a 60 day extension on my auto loan, but I was curious if I could get another month?
Ally on May 13, 2020 at 12:44pm
Hi Heidie, please give our Ally Auto team a call at 1-888-925-2559 or chat with us online at ally.com so a team member can look into your specific account and advise further.
Arthur W. on May 16, 2020 at 8:14pm
Thanks for the advice and info.
Ally on May 16, 2020 at 8:16pm
Thanks for reading, Arthur.
Leony E. on May 27, 2020 at 7:36am
I’ve been retired for five years now and receiving $929 dollars a month For social security, because I don’t work anymore I don’t file any taxes. I did not receive stimulus check, am I suppose to receive help also? How can I get this?
Mariano H. on May 31, 2020 at 3:36pm
I want to keep paying the monthly interest payments, and defer the principal until last . Is it possible? Thank you.
Allly on May 31, 2020 at 3:56pm
Hi Mariano, if you’ll give our team a call at 1-888-925-2559 or chat with us online at ally.com, a team member would be happy to look into your specific account further and advise.
Al S. on June 1, 2020 at 7:45pm
I have just received a 60 day notice of lay off. I've been with the company for just a little over 2 years. Under the Cares Act I now have the option of withdrawing my 401k with no penalties. If I do, would this disqualify me from receiving unemployment benefits once I'm laid off?
Suzanne T. on June 11, 2020 at 8:24pm
I need to know when my payment is due Still Have not got my unemployment they say it’s still pending. How far can this be deferred again? Thank you!!!
Ally on June 13, 2020 at 4:09pm
Hi Suzanne, if you’ll give our team a call at 1-888-925-2559 or chat with us online at ally.com, a team member would be happy to look into your specific account further and advise.
vicki M. on June 14, 2020 at 10:56pm
Thanks to Ally I am able to get in a better financial situation delaying my payments They have been great to defer my payments for a short period Thanks for being a good experience and in the future when I pay my car off I will be grateful
Ally on June 15, 2020 at 4:18pm
Hi Vicki, we’re happy we could help. Thank you for being an Ally customer.