American Rescue Plan Act of 2021
New round of economic impact payments, expanded child tax credit with advance payments, non-taxable unemployment benefits and and other tax provisions.
The IRS strongly urges taxpayers to refrain from filing amended returns related to the new legislative provisions or take other unnecessary steps for now.
Financial Clarity Group is on top of the changes and making adjustments as we process returns.
Also, the IRS has released IR-2021-54, which notes that the third economic impact payment will begin to be deposited over the next week. The third round of stimulus payments, those authorized by the 2021 American Rescue Plan Act, differs from the earlier payments in several respects:
The third stimulus payment will be larger for most people. Most families will get $1,400 per person, including all dependents claimed on their tax return. Typically, this means a single person with no dependents will get $1,400, while a family of four (married couple with two dependents) will get $5,600.
Unlike the first two payments, the third stimulus payment is not restricted to children under 17. Eligible families will get a payment based on all of their qualifying dependents claimed on their return, including older relatives like college students, adults with disabilities, parents and grandparents.
Stay tuned to Financial Clarity Group for updates.