Mar 17, 2021
The American Rescue Plan Act of 2021 was signed into law on March 11 to help the United States recover from the economic impact of the COVID-19 pandemic. This new legislation includes direct financial payments, extended unemployment benefits, expanded child tax credit, and numerous other provisions. Throughout this episode, Grant reviews several key provisions of the American Rescue Plan Act and what they mean for individuals and businesses.
[01:40] Introduction – The purpose of the new $1.9 trillion stimulus package and the main aspects it covers.
[05:01] Recovery Rebates – The new legislation brings stimulus checks of $1400 per eligible individual. Grant reviews the eligibility criteria for stimulus checks, the amounts available in different scenarios, and how the rules are different from the previously passed CARES Act.
[11:54] Checkpoints – Grant reviews the three checkpoints that are considered when evaluating the eligibility for recovery rebates and some of the tax planning opportunities related to this process.
[19:03] Unemployment Compensation – The new stimulus package contains extended provisions to help those who are unemployed due to the current economic situation. Grant dives into the eligibility criteria for this and how taxation comes into play for qualified individuals.
[22:05] Healthcare – Healthcare-related provisions in the stimulus package and how the new provisions are different from the CARES Act.
[31:27] Child Tax Credit – The new stimulus allocates more tax credit for dependents and also raises the age of eligibility. Grant dives into the new eligibility criteria and other updates related to child tax credits.
[36:48] Student Debt – The American Rescue Plan Act comes with provisions to make any student debts forgiven between 2021 and 2025 tax-free. Grant reviews how this works and who can benefit from this provision.
Resources:
American Rescue Plan:
www.whitehouse.gov/briefing-room/legislation/2021/01/20/president-biden-announces-american-rescue-plan/
H.R.1319 - American Rescue Plan Act of 2021:
www.congress.gov/bill/117th-congress/house-bill/1319/text