As many of you know, nearly a $2 trillion dollar stimulus package ( The American Rescue Plan) has been approved. It includes stimulus payments, unemployment benefits, tax credits and more. As our clients know, your tax returns determine stimulus amounts! The IRS will use the most recent information it has on file to determine your stimulus amount. This information could be from your 2020 tax return, or if you haven't filed this year or the IRS hasn't processed your 2020 return, they may use information from your 2019 return. If you qualify, you will be eligible for this third stimulus check. $1,400 per individual or $2,800 for a married couple and $1,400 per dependent with certain restrictions and caveats. New to this stimulus are payments for dependent college students.
Additionally, The American Rescue Plan also states the first $10,200 of unemployment benefits received will not be taxed for households with adjusted gross incomes of less than $150,000 in 2020. We are awaiting guidance from the IRS and states on how to process this change. The IRS has stated do not file an amended return at this time if you have already filed. Let us know if we can answer any questions you may have or if you need help calculating your stimulus payment. Remember, the Federal Tax Filing deadline for your 2020 taxes has been extended until May 17, 2021.
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