New American Rescue Plan Updates For Third
Stimulus Check and Other Tax Credits
Single filers with incomes above
$80,000, MFJs with income
above $160,000 and HOHs with
AGI more than $120,000 in 2020
are not eligible for the third
stimulus check.
The gross income considered will
be as per the 2019 tax return if
an individual has not filed his
2020 tax return or the IRS has
not processed the 2020 tax
return.
Children Tax Credit
Improvement: This provision
in the act is related to children
17 years or under and is
applicable for 2021.
Currently, the amount of
credit has been raised from
$2000 to $3600 for children
under 6.
First is an increase in the
credit amount available to
childless filers.
When filing the tax return for 2021, for
calculation of the earned income tax
credit, the taxpayer can use the
earned income of 2019 in place of the
earned income of 2021 if they think it
is less due to the pandemic.
Dependent Care
Assistance: This tax credit
has seen a significant
increase and is applicable
for 2021.
A taxpayer's unemployment
amount will not be taxed if
the household makes a
gross income less than
$150000.
Work with a tax
professional to see that
you get the benefit of these
changes.
Understand what benefits
the act offers and try to get
the highest possible
payments and tax credits.
Contact Us At:
https://finaccurate.co
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