On Wednesday March 10th, Congress approved the American Rescue Plan, the third stimulus relief package since the pandemic started a year ago. The $1.9 trillion American Rescue Plan Act includes measures ranging from stimulus checks to child tax credits, jobless benefits to vaccine-distribution funds, healthcare subsidies to restaurant aid. The legislation is the largest aid package to pass since widespread restrictions tied to the coronavirus pandemic began in March 2020.
Here’s what to know:
- Federal unemployment benefits of $300 per week have been extended until early September.
- If you collected unemployment in 2020 or do so in 2021, you do not owe taxes on the first $10,200 in assistance.
- Lots of people will receive $1,400 stimulus checks in the coming weeks. Individuals with an adjusted gross income of $75,000 or less and married couples earning $150,000 or less qualify.
- Most Americans with kids will qualify for a new child tax credit: $3,600 per year for every child under 6 and $3,000 for each kid ages 6-17.
Aside from these stimulus bill changes, tax day, April 15th, remains the same. Make sure to file your return on or before that date to avoid penalties. Check out our definitive guide to your 2021 tax return with detailed information on this year’s tax season. In addition, make sure to fund your retirement accounts by this year’s deadline. We will continue to monitor any changes to 2021 filing dates, but we recommend to check with your CPA with any questions on your situation.
If you have any questions on the third stimulus package and what it entails, please reach out to us at info@shermanwealth.com or schedule a complimentary 30-minute introductory call here.
