03/12/2021
Some what of a Cheat sheet
Third Stimulus or EIP3:
Eligible recipients will receive a payment of up to $1,400 for individuals or $2,800 for married couples and up to $1,400 for each qualifying dependent. For filers with income above a certain level, the payment amount will be reduced
This third round of payments are being distributed automatically, with no action required for eligible individuals. Your payment will be determined by information already on file with the IRS.
The payments are based on either 2019 or 2020 income
Individuals making $75,000 or less a year The payments decrease gradually for individuals earning above $75,000 — and they phase out completely for individuals making $80,000 or more. That’s a change from a prior income cap of $100,000.
Couples who file taxes jointly and earn $150,000 or less a year and their dependents each will get full payments of $1,400. The checks become gradually smaller for joint filers making above $150,000, and they phase out entirely at $160,000. That’s a change from a prior income cap of $200,000 for couples.
“Head of household” filers, would see a phase-out starting above an income level of $112,500 and no payments at $120,000 vs. a previous cap of $150,000
If you have new dependents
If you've had a child or assumed responsibility for an adult dependent since filing your 2019 taxes, it's also important to file a 2020 return ASAP to let the IRS know of your new dependents.
Ultimately, you should be able to claim this money if you're owed it. But you may have to wait a very long time. In fact, unless or until the IRS sets up a form you can complete to get the funds sooner, it's possible you might have to wait until you can file your 2021 taxes. That would likely be January 2022, at the earliest.
Unemployment Compensation:
The American Rescue Plan of 2021 allows the first $10,200 of unemployment compensation to not be taxable. These changes are retroactive to the 2020 tax return with incomes under $150,000.
Under the Senate version, federal unemployment insurance payments will remain at $300 per week
The benefits will extend through Sept. 6.
Child Tax Credit:
The American Rescue Plan of 2021 increases the Child Tax Credit amounts for qualified dependents for 2021. This will not affect the Child Tax Credit on your current, 2020 return.
The legislation would temporarily expand the child tax credit, increasing the amount to $3,000 for children ages 6 to 17 and $3,600 for children under age 6.
The amount is gradually reduced for couples earning over $150,000 and individuals earning over $75,000 per year. Families eligible for the full credit would get payments of up to $300 per child per month from July through the end of the year.
*** KEEP IN MIND THIS DEPOSIT WILL BE COMING OUT OF YOUR TAX REFUND FOR 2021 TAXES WHICH WE WILL FILE IN 2022 So if you work over time and or get bonus and or get a pay increase and you your self have not calauted the correct amount of taxes then you may end up owing and or not get the large REFUND you are use to getting please think of speaking with your Tax Person in what would be the best solution for you, as you will have the option to opt OUT…
Paycheck Protection Program:
The bill includes $7.25 billion in new money for the small-business loan program known as PPP and would allow more nonprofits to apply, including those groups that engage in advocacy and some limited lobbying. It also allows larger nonprofits to be eligible.
Support for low-income families:
The bill includes $4.5 billion for the Low Income Home Energy Assistance Program, known as LIHEAP, to help families with home heating and cooling costs. One provision would give the agriculture secretary the authority and funding to temporarily boost the value of cash vouchers for the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) up to $35 per month for women and children for a four-month period during the pandemic.
Supplemental Nutrition Assistance Program (SNAP) benefits through September 2021.
