On March 11, 2021, President Biden signed the American Rescue Plan into law. The law provides $1.9 trillion of stimulus to help the United States recover from the devasting economic and health impacts of the COVID-19 pandemic. The sweeping legislation includes direct stimulus payments to qualifying households, extends unemployment compensation, continues eviction and foreclosure moratoriums, and increases the Child Tax Credit. It also provides funds to states and local governments to compensate for lost tax revenue, money for elementary schools seeking to reopen safely, and subsidies for COVID-19 testing and vaccination programs.
Does my household qualify for the stimulus payment? Households with an adjusted gross income (AGI) of $75,000 or less for individuals or $150,000 or less for couples filing a joint return are eligible to receive the full stimulus amount. Individual taxpayers receive $1,400 each. If you filed a joint return, your total stimulus would be $2,800. The law also provides $1,400 multiplied by the number of dependents. For example, suppose you and your spouse file a joint return, have two dependents, and earn $100,000 per year. Your total stimulus amount should be $5,600 - $1,400 times four (you, your spouse, and two dependents), per the legislation.
Here’s how the payment breaks down:
When will stimulus checks be delivered? The IRS and Treasury Department have already begun sending checks. Officially, Americans should receive the first direct deposits on March 13th and 14th. Paper checks are scheduled for distribution the week of March 22nd. These dates may change as the money rolls out in waves. The legislation requires all qualifying households receive their payments before December 31, 2021.
Read more about the direct deposit window.
Will I receive a stimulus payment for a spouse or relative who has passed away? This question is a bit tricky as it depends on several factors. Your spouse or relative may be eligible to receive a stimulus payment if they passed away in 2020 or 2021 and were eligible for the Recovery Rebate Credit but didn’t receive one.
In a recent article, USA Today interviews a TurboTax representative to learn more about this potentially complicated topic.
We hope this information is helpful! If you have any additional questions or concerns, please contact our office.
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