5 Steps to Follow If You Lost Your Job During the COVID-19 Pandemic
As COVID-19 forces more and more of us to stay home, you may find yourself suddenly out of work. If that’s the case, you aren’t alone. Americans have filed over 17 million unemployment claims in the last three weeks alone.
We understand that this is overwhelming and are here to help! Follow this list to make sure you can take care of the essentials during this stressful time.
Step #1: Apply for Unemployment Insurance
Unemployment insurance is a government program that pays you cash when you lose your job through no fault of your own. The payments typically last for 26 weeks. On average, they replace about half of your regular wage.
Unemployment requirements vary by state, but new legislation permits gig workers and freelancers nationwide to temporarily apply for this benefit, as well.
You can use this page to find your state’s requirements for filing unemployment claims. It typically takes two to three weeks to get approved and receive your first benefit check; keep in mind that the process (and government websites) may be a little slower right now due to the volume of people applying. After you’re approved, you’ll have to file weekly reports that explain your current employment situation.
Step #2: Get Ready for Your Stimulus Check
As part of the Coronavirus Stimulus Package, the federal government is sending money directly to many Americans. If you’re eligible, you’ll receive one payment based on your family size and income. For a single person, you could receive up to $1200, plus $500 per eligible child. Learn more about this relief money here.
You do not need to apply to receive your stimulus check. The IRS will use information from your 2018 or 2019 tax return to deposit money directly into your bank account. If you have not filed your 2018 taxes, you’ll want to do so as soon as possible (learn how to file taxes late here). If your address has changed since your last tax return, you should mail in an IRS Form 8822 with your updated information.
Step #3: Figure Out Your Health Insurance
It’s always important to have health insurance, but it’s especially crucial during a pandemic; now more than ever, you’ll want financial and medical protection in case of an emergency.
If you just lost job-based health insurance:
Losing job-based health insurance is a qualifying event. This means you are eligible to shop for new health insurance options that are sold on HealthCare.Gov or your state’s marketplace. Depending on your income, you may qualify for subsidized prices or even Medicaid.
You can also consider enrolling in COBRA (if offered by your employer) or short-term health plans. For more information on what to do when you lose health insurance, read this guide.
If you’re self-employed and don’t have health insurance:
Many states are offering limited-time Special Enrollment Periods that allow people without health insurance to sign up for coverage. You can see if this option is available in your state here.
Depending on your income, you may also be eligible for Medicaid, which provides free or low-cost health care. Medicaid income limits vary by state. Most states require your Modified Adjusted Gross Income to be below 138 percent of the Federal Poverty Level (that’s $36,156 for a family of four.) Enrollment in Medicaid is open year-round.
Step #4: Get Help With Your Bills
If a drop in income is causing you to struggle with financial burdens, there are many programs currently available to help you stay afloat during this crisis.
Government and State Programs
Federal programs like TANF and SNAP (food stamps) exist to provide support during times when you can’t afford groceries and essentials. You can see a detailed list of these programs here.
Additionally, many major cities are currently providing extensive resources, such as free meals for children, small business grants, and more. View our city-by-city guide here.
Phone, Car, and Credit Card Payments
Many companies are working with customers to help them with credit and loan payments during this pandemic. If you are struggling to make ends meet, look into what resources are available for:
Small Business Costs
If you need help covering your payroll, business rent or mortgage payments, and other increased costs, you can apply for an Economic Injury Disaster Loans (EIDL). When you apply for the EIDL, you can request a $10,000 “advance grant.” This is money you will receive whether or not your loan application is approved, and you will not need to pay it back.
Learn more about this loan and how to apply here. If you’re eligible, you will want to apply as soon as possible because funds are limited!
Step #5: Look Into New Work Opportunities
Work at Home
With new stay-at-home orders in place, it’s time to get creative about work. What services can you provide from home? Can you pick up an online part-time job? Look into options on our list of popular online gigs here.
Essential Work
Many essential businesses, like grocery stores, are looking to hire new employees during this busy time. Many major cities are tracking current work opportunities (see these options in our guide here). If you don’t see your city on our list, look up your local administration’s website (e.g. “Salt Lake City government website”). They will typically share COVID-19 resources and job opportunities there!
Bonus Step: Reach Out For Help!
Do you need tax guidance right now? What about help finding health insurance? Head here for answers to your questions.
For additional COVID-19 resources, please visit our guide here.
