American Rescue Plan Act

 

What is the American Rescue Plan Act?

The American Rescue Plan Act (ARPA) provides a third round of stimulus checks to help people impacted by the pandemic recession. It includes direct financial relief for Americans including:

 

A $1,400 stimulus check for Americans earning up to $75,000 a year (up to $150,000 a year if married).
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An additional $1,400 for each dependent claimed on your taxes.
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An expanded federal Child Tax Credit of $3,000 for children ages 6 to 17 and $3,600 for children under age 6.
This amount will be paid in installments of up to $300 a month for at least one year beginning as soon as July.
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An expanded federal Earned Income Tax credit (EITC)

Do I qualify for another stimulus check?

 

 

You qualify for a $1,400 stimulus check if you earned up to $75,000 in 2020 ($150,000 if married and filing jointly).

If you earned up to $80,000 in 2020 ($160,000 if married and filing jointly), you will be eligible for a reduced check.

Each dependent on your tax return also qualifies for $1,400.

Citizen spouses and children living in mixed-status families are also eligible.

 

Do I qualify for the federal child tax credit?

The American Rescue Plan act made changes to the credit for 2021.

 

 

You qualify for the federal child tax credit if you have a child, both you and your child have a Social Security number, and you made less than $200,000 a year ($400,000 if married and filing jointly).

If your child is under 6, you qualify for a tax credit of up to $3600.

If your child is between 6 and 17, you  qualify for a tax credit of up to $3,000.

If you earn over $75,000 a year ($150,000 if married and filing jointly), you will receive a smaller credit of $2,000 per child.

Parents who have no income also qualify.

 

 

If you received unemployment benefits and earned less than $150,000 in 2020, the first $10,200 in unemployment payments are now nontaxable on your federal taxes.

Note: Unlike California’s Golden State Stimulus, only people and dependents with Social Security numbers will qualify for federal relief. 

The ARPA also includes additional funding and tax credits for small businesses, rental assistance, the Low Income Home Energy Assistance Program, and the WIC program.

FAQ

 

How do I claim my stimulus check and when will I get it?

 

 

The Treasury and IRS are working to start sending payments out this month.

For households who have already filed their income tax return for 2020, the IRS will use that information to determine eligibility and size of payments.

For households that haven’t yet filed for 2020, the IRS will review records from 2019 to determine eligibility and size of payment. That includes those who used the “non-filer portal” for previous rounds of payments.

For tax returns with direct deposit or bank account information, the IRS will be able to send money electronically. For those households for which Treasury cannot determine a bank account, paper checks or debit cards will be sent.

 

What if I still have questions about the stimulus check?

Visit IRS.gov for the most up-to-date information.

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