03/19/2021
The American Rescue Plan Act of 2021 (ARPA) recently enacted by President Joe Biden, is an approximately $1.9 trillion COVID-19 relief, funding and tax bill that has received a lot of attention.
Some highlights that may be of interest are listed below.
- The stimulus package also offers $1,400 stimulus checks
to individuals who earned up to $75,000, and married couples
with incomes up to $150,000.This round includes college
aged students that were overlooked previously.
- An extension of the $300 federal unemployment benefit supplement through Sept. 6,2021.
- A tax exclusion for certain unemployment compensation income and for certain EIDL advances and Restaurant Revitalization Fund grants.
- For individuals who received unemployment benefits in 2020 and already filed their Income Tax Return (Form 1040), YOU WOULD HAVE INCLUDED THIS AS INCOME, and the latest changes allow up to $10,200 to be EXCLUDED! At a Federal tax rate of 10%, $1,200 may have been overpaid. Guidance on how to claim this money is forthcoming, and it may require filing an Amended Return.
For more information refer to, http://bit.ly/3ltXVf4.
In addition to the $1,400 stimulus payments to many Americans, the American Rescue Plan Act provides many other relief measures, and also some new business tax measures, that should be noted.
