The American Rescue Plan Act of 2021 (the latest COVID-19 relief bill) was just signed into law today. We’ve highlighted a couple of the key items below that may be most relevant to you:
- Up to $1,400-per-person stimulus payments that will send money to about 90% of households
- A $300 federal boost to weekly unemployment benefits
- An expansion of the child tax credit to up to $3,600 per child for 2021
- First $10,200 of the 2020 unemployment benefits are not taxable for households making less than $150,000
Since the change to the unemployment benefits applies to 2020 tax returns, even if you have filed your 2020 tax return already and it included unemployment benefits, contact your Liberty Tax® professional for assistance.
For more information from the IRS, click here.