The COVID-19 pandemic has taken a toll on people’s way of life to the extent of disrupting crucial income streams. Millions of people in the U.S have lost their jobs with some on the brink of losing as cases of bankruptcies and shutdown get out of control. While the pandemic has emptied people’s bank accounts, payouts in the form of federal government checks, insurance, and tax refunds are helping cover some of the lost income streams.
Tax Refunds
The enacting of the Coronavirus Aid Relief and Economic Security Act in March has provided a leeway for people to earn some money in the form of tax refunds. The CARES Act, as it stands, may cause some taxpayers to have overpaid 2019 quarterly estimated tax, by as much as 10% or more.
In the aftermath of the COVID-19 pandemic, taxpayers are encouraged to apply for a tax refund by filling form 4466 for a quick refund. The Act provides cash refunds for many taxpayers. However, taxpayers should evaluate whether they are eligible for cash tax refunds.
Insurance Refunds
Insurance refunds have helped caution some wallets as insurance companies continue to refund some premiums. Car insurance refunds have gathered pace as people are no longer able to move, let alone drive around amidst the social distancing policies in place.
Some car owners have received insurance refunds of between 15% and 25% on car insurance premiums for April and May. Insurance premium refunds depend on the insurance company as well as the agreement signed with the company.
College Refunds
A growing number of college students are seeking repayment for tuition, board, and other expenses as campuses remain closed in the aftermath of the COVID-19 pandemic. For some college students, there is some reason to smile, as some colleges are refunding some of the fees paid prior to the COVID-19 pandemic disrupting operations.
Colleges in Louisiana have already promised to refund at least $24 million to students. While some of the colleges have remained putting, some have been hit with class-action lawsuits as parents insist remote learning does not have the same impact as in-person education.
Travel and Other Consumer Refunds
The travel and hospitality industry has been the most hit by the pandemic amid the social distancing policies. The industries are now contending with the Cash Refund for Coronavirus Cancellation Act of 2020. The Act requires establishments in the industries to refund customers who decide to cancel booked and paid plans in view of the COVID-19 pandemic.
Similarly, if you paid for a hotel booking all an air ticket, you are eligible for a refund should you decide to cancel all the plans altogether. For instance, air carriers are required to refund airfares whenever a customer cancels flights. Unlike in the past, they cannot offer reasonable or alternative itinerary. It is believed that airlines are sitting on close to $10 billion in potential refunds.
The ongoing refunds could not have come at a better time as Americans need cash in their pocket to stay afloat as the COVID-19 pandemic continues to disrupt operations.
Leave a Reply