Financial relief resources for Turo hosts

Editor’s note: Turo is providing this for informational purposes only. Please work with your own trusted tax, financial, legal, or related professional in determining the best options and resources available to your unique circumstances.

Additionally, as of the publication date, the funds from the CARES Act have been tapped out. Stay tuned into the ongoing government developments for updates.

In this turbulent time, many Turo hosts are weighing their options and trying to figure out if any of the government relief packages splashing news headlines could potentially apply to them.

In March, the US federal government passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act to provide emergency financial relief for individuals and small businesses affected by COVID-19.  While everyone’s circumstances are unique and hosts should consult their trusted tax, legal, and financial advisors, here are some resources to help you find your footing as you navigate this new landscape.

Unemployment resources

If you’re one of the 17 million Americans who filed for unemployment benefits over the last several weeks, you’re clearly not alone. With unemployment filings skyrocketing at an unprecedented rate because of fallout from COVID-19, the benefits have been difficult to nail down. However, the US Department of Labor has an unemployment insurance program, which provides unemployment benefits to eligible Americans, and the federal government is allowing more flexibility for states to revise their laws around unemployment benefits to help meet the soaring demand.

Additionally, individual citizens may be eligible for cash assistance (aka “Economic Impact Payments”) depending on their annual adjusted gross income. Qualifying individuals will receive $1,200, qualifying married couples filing their 2019 tax return jointly will receive $2,400, plus $500 for each qualifying child. If you’re eligible to receive these stimulus benefits — which vary by annual income (see this helpful article from Vox) — you’ll receive it automatically once the IRS cuts the checks (estimated for mid-April). Check your eligibility here.

Tax and loan resources

In addition to providing Economic Impact Payments and extending the deadline for filing 2019 taxes from April 15 to July 15, 2020, the CARES Act also suspends IRS penalties for early withdrawals from a retirement account, giving easier access to tax-advantaged retirement accounts for everyone. Under the act, taxpayers can withdraw up to $100,000 from their retirement accounts, without the 10% early-withdrawal penalty. The relief package also eases some of the rules surrounding 401(k) loans.

Additionally, federal student loan payment deadlines have been suspended for the next six months, so many borrowers may be eligible for federal student loan relief — check with your loan servicer to see if you qualify.

The CARES Act also allows employers and self-employed individuals to defer the employer share of their Social Security tax payments for which they’d otherwise be responsible, relieving some of the immediate pressure on employers. The deferred employment tax must be paid over the next two years, with half of the amount required to be paid by December 31, 2021 and the other half by December 31, 2022.

Hosts may be eligible for other tax benefits, like increasing the limitation on deductible business interest and eased restrictions on the use of net operating losses. Here’s a comprehensive resource on COVID tax relief questions, and be sure to consult your tax advisor to see which benefits you may be able to take advantage of.

Small business resources

If you are the proprietor of a small business suffering substantial economic injury as a result of COVID-19 and its economic aftershocks, you may be eligible for low-interest federal disaster loans from the Small Business Administration, including an emergency loan advance of up to $10,000. The application is available here. 

Additionally, small business owners may be able to take advantage of the Paycheck Protection Program (PPP), which authorizes $349 billion in forgivable, federally guaranteed loans for small businesses to continue to pay their employees during the economic shutdown. Small business owners can review the FAQs of the PPP here to see if they qualify for this benefit.

If you have employees on staff helping you to manage your operations, you could benefit from the Employee Retention Credit, a refundable tax credit equal to 50% of qualified wages paid to employees after March 12, 2020, and before January 1, 2021. Take note, however, that you can’t benefit from both the PPP and the Employee Retention Credit — you can only use one or the other.

The US Chamber of Commerce has detailed answers to many of your eligibility questions for the various benefits of the CARES Act, as well as this helpful checklist to guide you through the application process step by step.

Parking resources

If you have a car or two that are usually out on Turo trips, you may need a place to park them for a few weeks while you see how and when your market starts to rebound. Several Turo hosts from coast to coast have come together to rally their parking resources and offer up their spaces and services to other Turo hosts. This list of local parking solutions is provided by Turo for informational purposes only; hosts are responsible for working directly with the following individuals to verify availability and pricing.

Parking solutions

Auto-related financial resources

Of course it can be scary if you’ve got car payments looming and no Turo trips drumming up income to help you offset the costs. While the travel industry is in a global lull, there are still trips being booked locally, and we forecast a gradual recovery for travel through the end of the year. To bide your time responsibly while we nurture that gradual bounceback, one option for near-term relief could be deferring your car payments. See if the following auto manufacturers or third-party lenders could help you potentially defer payment on your car. 

Please note, this information is provided for informational purposes only. Turo is not affiliated with any of these lenders. Please contact them directly for more information.

Payment relief services — car manufacturers

Payment relief services — other lenders

Payment relief services — insurance

As you know, it’s critical — during the best, the worst, and the ugliest of financial times — to manage your personal finances smartly and carefully. The University of Wisconsin-Madison has a very helpful guide for people trying to manage their finances and stretch their resources during this trying time, covering everything from paying bills to applying for loans to looking after your family.

We will get through this, so for now, take a deep breath, be patient, use the resources at your disposal, and start preparing for the brighter days ahead.