Homeowners, Renters, and Taxpayers Get Extended Financial Relief

When COVID-19 struck early this year, Congress quickly stepped up to offer relief to homeowners, renters, and taxpayers. As the pandemic's economic impact continues, Uncle Sam has now expanded the relief offered under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Plus, there is some good news for taxpayers who are still waiting for their tax refund.

Here are the latest updates:

The moratorium on home foreclosures and rental evictions, which already had been extended once until the end of August, will now remain in effect through Dec. 31, 2020.  This applies to homeowners or rental properties with a mortgage guaranteed by  Fannie Mae, Freddie Mac, the Federal Housing Administration and the Department of Veterans Affairs (VA).

This year's waiver of required minimum distributions (RMDs) has been expanded to include inherited IRAs. If you took a 2020 RMD from an inherited IRA and don't need the money, you have until Aug. 31, 2020, to return it to the account. It will be treated as a tax-free rollover. This relief prevents heirs from having to sell investments that have dropped in value, thereby turning paper losses into actual losses. See IRS Expands RMD Relief for Retirees.  

You may be getting more than a tax refund from the IRS. The government extended the tax deadline from April 15 to July 15, 2020, because of the pandemic. But if you were due a refund, the IRS says it will pay interest on delayed refunds for returns filed by the mid-July deadline. Interest will accrue from April 15 until the date of the refund. The rate that the IRS pays out is adjusted quarterly. For the second quarter beginning in April, the rate is 5% per year — compounded daily. That's better than you can earn at the bank. The annualized rate drops to 3% in the third quarter. The IRS says you may receive the interest in a separate payment from the refund. The not-so-good news: You will have to report the interest income on your next return — and may owe taxes on it.

Also, if you or a family member's employment has been impacted by COVID-19, see our Employment Transition Resources and for more information, please contact your ICMA-RC representative.

Please note: The contents of this publication provided by MissionSquare Retirement is general information regarding your retirement benefits. It is not intended to provide you with or substitute for specific legal, tax, or investment advice. You may want to consult with your legal, tax, or investment advisor to review your own personal situation. Some of the products, services, or funds detailed in this publication may not be available in your plan. This document may contain information obtained from outside sources and it may reference external websites. While we believe this information to be reliable, we cannot guarantee its complete accuracy. In addition, rules and laws can change frequently.

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