The House and Senate have now passed a whopping $1.9 trillion in Coronavirus stimulus benefits. The bill will now be sent to President Biden for his signature, which is expected in the coming days.
Here are some of the things that it will do:
- Stimulus checks of $1,400 per adult and per child.
- This will set the government back some $400 billion. The checks will be quickly phased out for single filers making more than $75,000 and married filers making more than $150,000 AGI. That amount is phased out at a rate of 1% of the stimulus per $100 of excess income until a single filer makes $80,000 or a married couple without children makes $160,000, at which point it is completely phased out.
- All dependents, even adult dependents such as college students or elderly parents, are eligible for a check this time around!
- Payments will be based on your most recent tax filings, either 2019 or 2020. Don’t forget that if your income drops on your 2020 tax return, or if you have a child in 2021, you can still claim additional funds on your 2021 tax return! If your income goes up then you won’t have to pay this back.
- Child refundable tax credit of $3,000-$3,600 per child.
- Children under age 6 will be eligible for a $3,600 refundable tax credit and other children under 18 are eligible for a refundable $3,000 tax credit. That’s up from $2,000 per child under 17. Payments can be made monthly rather than all of it in a lump sum, starting on 7/1. Newborn children will be eligible for monthly payments as soon as they’re born.
- Child tax credits will be phased out for single filers making more than $75,000 and married filers making more than $150,000 AGI. That amount is phased out at a rate of $50 per $1,000 of income. If your income goes up in 2021 and you exceed that AGI, a safe harbor provision means you won’t need to repay the monthly payments received.
- Dependent care refundable credit of $4,000 for one child or $8,000 for 2 or more children, up to 50% of the expenses needed to work or find work for household AGI up to $125,000. That gets phased down to 20% of the expenses for household AGI up to $400,000.
- Unemployment benefits of $300 per week continue through September 6, costing the treasury some $246 billion. Additionally, the first $10,200 per worker in unemployment benefits won’t be taxable and won’t count towards AGI for households making less than $150,000. These will not only cover regular employees, but also gig economy and other self-employed workers who lose work due to coronavirus.
- Student loans that are forgiven between 12/31/20-1/1/26 will not be taxable.
- Earned Income Tax Credits for childless workers will nearly triple to $1,502. The minimum age will also be lowered to 19 and the maximum age cap will be removed.
- Food stamps will be increased by 15% and extended through September. WIC will also have increased benefits. Pandemic EBT also continues through the summer.
- Health insurance subsidies will be available through September.
- EIDL grants for an emergency grant for small businesses will be funded with $15 billion for grants up to $5,000.
- Bars and restaurants will be able to apply for grants up to $10 million based on losses in 2020 compared to 2019 income.
- PPP will be funded with another $7 billion.
- Employee Retention Tax Credit is extended through December.
- State and local governments will get $360 billion of new funding.
- K-12 schools will receive $130 billion in funding to help get back to classroom learning. Private school will receive $2.5 billion in funding as well. Colleges will get $40 billion.
- $30 billion in housing aid will be sent to governments to help low income households pay rent, mortgages, and tackle homelessness. The eviction and foreclosure moratorium will be extended through September.
- Vaccines and testing will be funded with over $60 billion and COVID disaster relief will get another $47 billion.
Which of these items will you benefit from? What do you think of this bill and the new benefits?