from our Hand R block consultant Churchill Caruthers Jr

 

Another stimulus package has been approved as part of the American Rescue Plan, which also includes additional tax credits and unemployment benefits. Here’s what you need to know about upcoming stimulus payments: This time, more dependents qualify. Millions of full-time and part-time workers, self-employed, unemployed and retired Americans are eligible to receive a third stimulus. Unlike the first two rounds of stimulus payments, you will receive stimulus money for all dependents on your tax return, including college students and adult dependents. Payouts can be estimated with our stimulus payment calculator. If you’re eligible, the base amount under this new bill allows for $1,400 per individual or $2,800 per couple, and $1,400 for each dependent. Payments vary based on income, number of dependents and your filing status. Click here for more information on eligibility, thresholds and payments that phase out. 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. Track your payment. Once the IRS processes your payment, the IRS Get My Payment website will display when you should expect the payment as well as the account information where a direct deposit will be sent or if a payment will be mailed. Updated unemployment measures could provide you additional relief. 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 (for joint filers, it’s up to $10,200 per spouse) in 2020. As we have more information from the IRS, we will provide updates on the unemployment benefits section of our Coronavirus Resource Center to help you understand what this may mean for your tax return.