On Saturday 03/06/21 the US Senate passed their own version of the 2021 COVID relief bill, for a cost of $1.9 Trillion, which is expected to be passed by the House as soon as Tuesday 03/09/21.
Here are some key provisions:
- Direct payments of up to $1,400 per individual.
- Extension of $300 federal subsidy of weekly unemployment benefits to September 6, 2021.
- Up to $10,200 of unemployment benefits exempt from federal income tax.
- If you received unemployment benefits in 2020, you may want to hold off filing your tax returns until the bill is passed and the IRS (and software vendors) have the opportunity to incorporate the new law into the tax software.
- If you have already filed your return, or do not want to wait for the new changes, you will need to file an amended tax return to receive any additional refund you may be due as a result of the new law.
- Expansion of child tax credit, up to $3,600 for children under 6, and $3,000 for children up to 17.
- Expansion of the Earned Income Tax Credit.
- $14 Billion payroll support for U.S. Airlines as long as they do not furlough or cut employee’s pay rates through 09/30/21.
- Additional funding for Covid-19 vaccine distribution.