President Joe Biden signed the American Rescue Plan on March 11, enacting a nearly $1.9 trillion pandemic relief package with benefits including another round of stimulus payments, an extension of unemployment benefits and generous tax breaks to low- and moderate-income people. I have gone through the bill and the new stimulus package update to help you understand the assistance it offers. In this article, we will understand everything related to this stimulus package. The entire blog consists of questions and answers so it will be easy for you to jump to the most relevant part according to you. Without further ado, let’s get started.
New Stimulus Package Update: When Will The Stimulus Check Arrive?
The stimulus money promised under the American Rescue Plan began to hit the bank accounts of many Americans on March 17, 2021 — the first official payment date. Treasury and Internal Revenue Service officials have guaranteed that the relief packages will soon reach all eligible citizens. The payments will be released in batches over several weeks, with some coming in the mail in the form of checks or debit cards. The Treasury Department has been working with financial institutions to try to ensure that payments arrive more quickly this time around than they did last year.
How Can You Check The Status of Your Stimulus Payment?
The new stimulus package update makes it possible for you to track the status of your payment via the I.R.S.’s Get My Payment tool. Do note that the volume of users sometimes overwhelms the site so you might use some patience here.
How Big Are The Stimulus Payments And Who Is Eligible?
The stimulus payments will be $1,400 for most recipients. Those who are eligible will also receive an identical payment for each of their children.
To qualify for the full $1,400, a single person must have an adjusted gross income of $75,000 or below. For heads of household, adjusted gross income must be $112,500 or below, and for married couples filing jointly that number has to be $150,000 or below. To be eligible for a payment, a person must have a Social Security number.
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New Stimulus Package Update: Do College Students Count As Eligible Dependents?
The latest stimulus news declared college students whom qualifying taxpayers claim as dependents are eligible. Note that they weren’t eligible for past payments. The payment goes to the parent taxpayer, not the child.
How Does The Stimulus Package Affect Unemployment Payments?
If you’re already receiving unemployment benefits, payments will generally be extended for another 25 weeks. The weekly supplemental benefit, which is provided on top of your regular benefit, will remain $300. Although unemployment benefits are taxable, the new law made the first $10,200 of benefits tax-free for people with incomes of less than $150,000.
What Student Loan Changes Are Included In The Latest Stimulus Package?
There is a big change for people who already have debt. You wouldn’t have to pay income taxes on forgiven debt if you qualify for loan forgiveness or cancellation — for example, if you’ve been in an income-driven repayment plan for the requisite number of years, if your school defrauded you or if Congress or the president wipes away $10,000 of debt for large numbers of people. This will be the case for debt forgiven between Jan. 1, 2021, and the end of 2025.
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New Stimulus Package Update: Miscellaneous Changes
Following are a few more changes introduced in the stimulus check update.
- For the purpose of calculating the credit in the 2021 tax year, taxpayers could choose to use their 2019 income if it was higher than 2021, according to a Senate aide.
- People who otherwise would be eligible but whose children do not have Social Security numbers will be permitted to claim the version of the credit available to childless households. This change is permanent.
- Stimulus’ news update also mentions that taxpayers won’t be disqualified for the credit in 2021 until they have an investment income of $10,000, up from $3,650. This change will be permanent, with the $10,000 threshold indexed to inflation.
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