March 12, 2021
After a long back-and-forth, President Biden signed the $1.9 trillion American Rescue Plan (ARP) into law Thursday afternoon.
Let’s review some of the major impacts in the bill and how it will effect you moving forward.
$1,400 Stimulus Checks
The headliner of the ARP is the 3rd round of stimulus checks. The IRS uses your most recent tax return to determine your eligibility. So, depending on when you most recently filed your taxes, the IRS will most likely be using 2019 or 2020.
You will receive the full $1,400 stimulus check if you meet the following conditions:
Single Filing Status – Adjusted Gross Income (AGI) of $75,000 or less
Married Filing Jointly – AGI of $150,000 or less
Head-of-Household Filing Status – AGI of $112,500 or less
If your AGI is over $75,000 but less than $80,000, you will still receive an economic impact payment, but at a lesser value. Single filers will receive $280 less for every $1,000 over $75,000.
When it comes to dependents, this time around ALL dependents will receive a $1,400 stimulus check. In previous rounds, dependents over age 16 and adult dependents did not receive one. If you fit within these requirements, you will receive a stimulus check for each child.
Now, if you qualify for a bigger stimulus check based on your 2019 income compared to your 2020 income, it is okay to wait to file your return. But you must file by April 15th or file an extension.
Who won’t get a stimulus check?
Single filers with an AGI of $80,000 or more
Joint filers with an AGI of $160,000 or more
Head-of-household with an AGI of $120,000 or more
Lastly, when will you get your check?
The first batch of checks are expected to hit bank accounts the weekend of March 13 and 14, according to White House Press Secretary Jen Psaki.
Married Couples Should Consider This
For married couples that file jointly, consider speaking with us about if filing separately would maximize your ability to receive these stimulus benefits. There may be some instances in which filing separately would be more beneficial.
Now, we are not saying it is a guarantee that if you file separate that you will receive a stimulus check.
However, we can do our best to work together to obtain if you are deemed eligible.
Next, we will go over unemployment benefits under the latest relief bill.
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Christopher Boyer is an Accountant, Bookkeeper, Enrolled Agent & QuickBooks Pro Advisor. Chris provides a wide array of business consulting services, taxes and IRS representation for business owners, individuals, families, corporations, trusts, and estates.