by sreamercpa | Mar 18, 2021 | accounting-tax, COVID Relief Bill
Today many taxpayers woke up to find they had more money in their bank accounts thanks to the Third Round of Stimulus checks.
On March 11 President Biden signed the American Rescue Act (ARA) into law. The ARA provides up to $1,400 for eligible taxpayers ($2,800 per married couple) and an additional $1,400 per adult dependent children.
The stimulus payment is tied to your 2020 federal adjusted gross income (AGI) if you have already filed your 2020 return; or your 2019 AGI if you have not filed your 2020 return yet. The stimulus payment will phase out for single taxpayers with income between $75,000 and $80,000, heads of household with incomes between$112,500 and $120,000 and couples filing jointly with income between $150,000 and $160,000.
So if the Treasury Department has your bank account information on file, you should keep checking your bank account for your direct deposit. If your bank information is not on record, you will receive payment in the form of a paper check or debit card so keep an eye on your mail. And double check anything that looks like a credit or debit card.
by sreamercpa | Mar 9, 2021 | COVID Relief Bill
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.
