The “American Rescue Plan” granted various financial aid to Americans affected by the pandemic.
Photo: ADEK BERRY / AFP / Getty Images
Apart from the continuation of sending payments by third stimulus checkThere are two other major financial aid programs approved as part of the Biden Administration’s “American Bailout Plan” that are already being distributed by the Internal Revenue Service (IRS) or will begin delivery shortly.
Although the above provisions are not the only ones under the third stimulus bill passed in the US Congress, they are among the ones that give the most money to Americans.
Exemption of $ 10,200 in the payment of taxes for unemployment benefits in 2020
The first of these is the low incentive the exemption of $ 10,200 dollars in the payment of taxes for unemployment benefits during 2020.
Just over two weeks ago, the IRS announced through its website that initiated tax return corrections for eligible taxpayers to issue the corresponding refunds.
The two-phase process will start with the simplest returns and will continue until the end of summer with the more complicated ones or with couples filing jointly and claiming dependents as well as tax credits.
The 2020 $ 10,200 Unemployment Compensation Exemption from Income applies to those who earned less than $ 150,000 in adjusted gross income.
“You are eligible to exclude unemployment compensation if you received it in 2020 and your modified adjusted gross income (AGI) is less than $ 150,000. The AGI modified for the purpose of qualifying for this exclusion is your 2020 adjusted gross income minus the total unemployment compensation you received. This limit remains the same for all tax states, regardless of whether you are married and filing a joint tax return (it does not double to $ 300,000), ”the IRS explained in an entry on frequently asked questions about the exemption on its website.
The funds will reach the beneficiaries by direct deposit, paper check or debit card by post. The method of payment will depend on whether the person provided the IRS with their bank account details or not.
Extension of the “Child Tax Credit”
The other great Biden Administration program that the IRS has already begun to guide is the extension of the “Child Tax Credit.”
The money under this concept will be distributed in monthly checks between $ 250 and $ 300 per minor to eligible families between July and December who want it.
The first payment is scheduled to be sent on the 15th of the next month.
“The IRS and the Treasury also announced that CTC increased payments will be made on the 15th of each month, unless the 15th is a weekend or holiday. Families who receive the credit through direct deposit can plan their budgets around receiving the benefit. Eligible families will receive a payment of up to $ 300 per month for each child under 6 years of age and up to $ 250 per month for each child 6 years of age or older, ”the agency said in a statement on May 17.
Under the “American Rescue Plan”, Increased the maximum Child Tax Credit in 2021 to $ 3,600 for each child under the age of 6sya $ 3,000 per child between 6 and 17 years old. “The American Rescue Plan is projected to lift more than five million children out of poverty this year, reducing child poverty by more than half,” the IRS said.
The agency will open two portals on July 1 for people to update their family and dependent data so that they do not lose the benefits of the program.
One of the online tools will allow people who do not file taxes but have children to submit their information and include the number of dependents.
Through the other portal, families who so wish can require the IRS to send them the money that corresponds to them in a single total payment and not in monthly installments as the Government plans to advance.