As COVID-19 continues to impact our country, Congress recently passed a third stimulus bill in an effort to help Americans get through these difficult times. This $1.9 trillion dollar package will provide aid including Economic Impact Payments, continued Unemployment Assistance Benefits and increased child tax credit and more. Here’s a little more info, to help with any questions or concerns you might have.
Economic Impact Payments
Similar to the first and second round of stimulus payments, in the American Rescue Plan Act, those that qualify for the Economic Impact Payments will receive a one-time payment of $1,400. The IRS will determine eligibility based on 2020 tax return, if you have not yet filed your 2020 tax return the IRS will utilize 2019 tax information. Those individuals with adjusted gross income (AGI) up to $75,000, heads of household with AGI up to $112,500 and married couples with AGI up to $150,000 will get the full payments. Income above that, the payments phase out. Payments will begin to deposit into bank account starting as early as March 17th.
Those that claim dependents such as college students, elderly relatives and children will receive $1,400 for each household member. Before the end of March, the Internal Revenue Service and the Treasury Department will begin delivering the third round of Economic Impact Payments. Those that received their payment via direct deposit will see the direct deposit payments as pending or as provisional payments in their accounts before the official payment date. Click here to learn more and to determine if you are eligible.
With unemployment rates continuing to be high and many businesses in the beginning stages of opening around the country, Congress has approved to extend the federal unemployment benefits. The extension applies to people receiving state-level benefits as well as those that are receiving checks through the Pandemic Unemployment Assistance program, which was set to expire on March 14, 2021, is now extended through April 29, 2021. Those that qualify for unemployment checks will receive an additional $300 weekly. To see if you qualify or to confirm when payment is expected you’ll need to check with your state’s website. For more information on the Unemployment Insurance Relief, click here.
Child Tax Credit
Looking ahead for additional credit when filing 2021 tax return. Part of the approved bill is to increase the child tax credit for the year of 2021 tax returns. Currently, the credit is worth up to $2,000 per eligible child under the age of 16. With the approved bill this will increase to $3,000 per child under the age of 17 ($3,600 for ages 6 and below). In order to be eligible to qualify for the increased child tax credit married couples AGI up to $150,000 (or heads of household up to $112,500 and single filers up to $75,000) would receive the full value of the new benefit. For more information on the child tax credit or other dependents click here.