The third stimulus package – also known as the American Rescue Plan – has finally passed! Voting by the House is now done, and the bill should be on its way to Biden’s desk over the next few days to be signed into law by this Friday. Stimulus checks for those who are eligible should begin arriving in bank accounts approximately between March 15-17th – but could arrive as early as this weekend for some. For information on who should receive the full amount go here.
Eligible individuals with dependents (now defined as anyone who can legitimately be claimed as a dependent on your tax return – keyword: your return) will receive additional funds for each dependent – which means that the bill has expanded the dependent definition to also include dependent college students. Try using the Stimulus Calculator below to see how much you could receive (also discuss your situation with a tax advisor)!
Third Stimulus Check Calculator – American Rescue Plan
So, besides the third stimulus check, the following also made it into the third stimulus bill (I will keep you updated as more details release on some of these items):
- The extra $300 in weekly unemployment benefits, made possible through the Pandemic Unemployment Assistance (PUA) and Pandemic Emergency Unemployment Compensation (PEUC) programs, has now been extended to Sept 6th. Also important to note is that the first $10.2K is non-taxable for those with household income under $150K
- The Child Tax Credit has been raised to $3k per dependent child under age 17, which is a $1k increase from the previous increase; and to $3.6k for children under age 6; and the credit is fully refundable. The full credit amount is for those with income under $75K, or $150K for joint filers
- $128.6B going to schools to help them fully reopen safely by improving ventilation, having proper social distancing, and to hire janitors
- $19B earmarked toward emergency rental assistance
- An additional $7.25B infusion into the Paycheck Protection Program (PPP)
- $25B in grant relief for restaurants
- $20B to assist with vaccine distribution and increased COVID education
- $46B for covid testing/to make testing more available
- The Supplemental Nutrition Assistance Program (SNAP) had already been increased by 15% through June; this third stimulus bill may further extend the Program through September, but further extension is not yet clear
Mortgage Forbearance
If you own a home and have a federally-backed lender, the moratorium on foreclosures still remains through June, and you can still enroll in mortgage forbearance through June as well – if you have not already done so, check with your lender immediately to see if you qualify. Please keep in mind that all payments will be owed at the end of the forbearance, so please be sure you understand your repayment options and work with a financial advisor concerning selecting a repayment plan.
What’s NOT Included in the Final Version of the American Rescue Plan Bill
Because the Reconciliation process was used to get the package passed – a process which has strict limitations on what all can be included in the stimulus bill – in order to avoid defeat in the Senate, some items previously proposed in the current stimulus package were not able to be included in the final bill.
Unfortunately, the Eviction Moratorium has not been extended beyond March 31st – but may be extended through another Executive Order by Biden. Since a further extension is not guaranteed, please find emergency resources here, and also check out the end of the Shelly’s Frugality Podcast entitled “CDC Protection is NOT Automatic” here for all sorts of information that may help as you maneuver through the next phase of your rental situation.
Also check with your state to find out what eviction ban they may have in place to help you. Please also seek the help of a Legal Aid to provide you with assistance and information concerning your rental rights. Go to LSC.gov to search for low-income legal help.
The student loan forbearance extension currently remains at the date previously set, which is a pause on payment collection through September 30th.
The minimum wage increase to $15 unfortunately did not make the cut.
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Stay encouraged ❤️!
Shelly
Disclaimer: This information is provided for general information purposes only and do does not constitute nor is to be construed as tax or financial advice. Please consult with an accountant or financial advisor for advice suitable for your personal situation.