To help you make sense of the $1.9 trillion American Rescue Plan Act of 2021 signed by President Biden last week, our Financial Planning Specialist (Taylor Moline) has prepared a summary of the most relevant details…
How will the stimulus package impact you?
- Payments up to $1,400 per individual plus $1,400 per dependent (see table of income limits and link to stimulus check calculator below)
- Child tax credit up to $3,600/child (see article below for more details)
- $300/week of additional unemployment benefit extended through September 6 AND federal tax waived on up to $10,200 of unemployment benefits received in 2020 (see article below for more details)
- Direct deposit payments and checks have already begun, but since payments are being based on the income from your most recent tax form (and the IRS is not done done processing everyone’s taxes from 2019), delays are expected (see link below to check the status of your stimulus payment)
- Related update: the deadline for filing your personal income taxes has been extended to May 17 (see article below for more details)
Direct Payment Income Limits
| Single | Head of Household | Joint | |
|---|---|---|---|
| Full $1,400 | Under $75,000 | Under $112,500 | Under $150,000 |
| Phase Out* | $75,001 to $79,999 | $112,501 to $119,999 | $150,001 to $159,999 |
| No Payment | Over $80,000 | Over $120,000 | Over $160,000 |
Related articles:
When and how the IRS will send your payment
Child Tax Credit: Millions of parents could soon get up to $3,600 per child
TurboTax, H&R Block need time to account for $10,200 unemployment tax break
Tax Day for individuals extended to May 17: Treasury, IRS extend filing and payment deadline
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North Oaks Financial Group does not provide legal, accounting, or tax advice. Consult your attorney or tax professional.
