Direct stimulus payments are now being sent
Full payments of $1,400 for each individual that qualifies based on AGI
- Single filers with income below $75k
- Head of Households below $112.5K
- Married Filing Jointly below $150k
Stimulus payments phases-out to $0 for
- Single filers with income over $80k
- Head of Households over $120k
- Married Filing Jointly over $160k
Payments of $1,400 for each dependent claimed on returns (if within the income thresholds)
Payments are sent based on the most recent IRS tax returns (either 2020 or 2019) or for those that previously registered through the IRS Non-Filers tool last year
Payments will be sent through direct deposit, checks, and debit cards. New debit cards will be issued for this new stimulus payment
Check www.irs.gov/coronavirus/get-my-payment to track your 3rd Stimulus payment
2021 Child Tax Credit
The 2021 Child Tax Credit increased from the original amount of $2,000, to $3,000 for dependents between 7-17 years old, and $3,600 for dependents 0-6 years old. The qualifying age is based on the age of the dependent on December 31, 2021
This is only for tax returns filed for the 2021 tax year (which is filed in early 2022). Some Congress members are pushing to make this a permanent change, but further legislation is needed to extend this credit
Unemployment payments
Federal unemployment benefit payments of $300/week have been extended until September 6, 2021
Unemployment income is taxable at the Federal level. This stimulus package now makes the first $10,200 of unemployment non-taxable. Depending on your tax bracket, this will save taxpayers at least 10% of the money they received from unemployment (up to $1,020 in taxes)
For those that have already filed their 2020 tax return, the IRS and Congress has not said if returns should be amended or if they will adjust refunds based on this new legislation. Please wait until further information is released or check back here for updates.
Student loan forgiveness
Previously, student loan forgiveness was taxable income (meaning if your student loan balance was $30k and all of it was forgiven, then you would need to pay tax on $30k as income). This stimulus package has now made student loan forgiveness non-taxable which paves the way for potential future legislation.
No student loan forgiveness was included in this stimulus package. President Biden is not in favor of approving the proposed $50k of student loan forgiveness but is in favor of approving $10k. Future legislation is required to push this forward.
Additional aid
There has been additional funding in several programs including previous programs like Payment Protection Program (PPP) and Economic Injury Disaster Loan (EIDL), and new-pending programs like Shuttered Venue Operations (for live venue operators/promoters, live performing arts etc). Use this link for more information: www.sba.gov/funding-programs/loans/coronavirus-relief-options.
Paycheck Protection Program
This loan program provides loan forgiveness for retaining employees by temporarily expanding the traditional SBA 7(a) loan program.
COVID-19 EIDL
This loan provides economic relief to small businesses and non-profit organizations that are currently experiencing a temporary loss of revenue.
SVO Grant Program
The Shuttered Venue Operators Grant Program provides emergency assistance for eligible venues.
SBA Express Bridge Loan
Enables small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 quickly.
SBA Debt Relief
The SBA is providing a financial reprieve to small businesses during the COVID-19 pandemic.
Cross Program Eligibility
A summary of criteria that must be met when considering different funding options.
Additionally
The Rent and Mortgage Cancellation Act has been proposed multiple times but was not included in this Stimulus Package. This is being proposed to provide support to renters and landlords for past due rent and missed rent payments. President Biden and Democrat leaders are looking to sign an infrastructure bill in coming months that will provide roughly $3T worth of aid. This bill is focused on money for clean energy, roads, bridges, and broadband projects. The expectation is there will be other unrelated items included in this bill including funding for climate change and healthcare reform.