The American Rescue Plan Act of 2021 has been signed by President Biden and is now law. The latest stimulus package is designed to facilitate the country’s recovery from the devastating economic and health effects of the Covid-19 pandemic.
With bigger stimulus checks, more aid for the unemployed, funds for schools to safely reopen, a national vaccine program, and more money for small businesses all being part of the $1.9 trillion package, The American Rescue Plan is widely supported by the American people.
The bill includes:
-The bill allocates a third economic impact payment to qualifying Americans, up to $1,400 for individuals and dependents.
-Unemployment benefits have been extended through September 6, 2021, providing $300 a week (in addition to state unemployment) and making the first $10,200 tax free for households making less than $150,000 per year. The first $10,200 in unemployment benefits are tax-free for 2020 for taxpayers making less than $150,000 per year.
If you received unemployment benefits in 2020 and already filed your 2020 tax return, it’s not too late to take advantage of the first $10,200 in unemployment benefits being tax-free. You will want to file a replacement return (prior to April 15, 2021) or file an extension to give yourself more time to file a replacement return and avoid filing an amended tax return.
-The Paycheck Protection Program will get $7.25 billion in new money to help small businesses, independent contractors, and some non-profits, that have been struggling due to the pandemic.
-The Child Tax Credit will be temporarily expanded, increasing the amount to a maximum of $3,000 a year for children ages 6 to 17, and a maximum of $3,600 a year for children under age 6.
-The bill includes funds for the CDC to track, administer and distribute Covid-19 vaccines, as well as funds for diagnosing and tracing Covid-19 infections and for distributing testing supplies a personal protective equipment.