With the signing into law of the new stimulus package, we can finally take a look at and interpret the details of what the new rollout will entail for everyone. Let’s jump in to the nitty gritty of the major updates to be aware of and what everyone want’s to know.
Who Qualifies For A Stimulus Check?
This time around, the conditions are set in a fairly straightforward manner:
What About The New Tax Guidelines?
Here we’ll see a major development in two areas of tax filing which in turn will contribute to greater savings to those for whom it applies:
Unemployment:
If you were on unemployment last year due to Covid-19, it has been decided that there will be no taxes needed to be paid on the first $10,200.00 of the unemployment relief.
Child Tax Credits:
For those filing with children dependents, we have great news. The child tax credits proposed in this new bill will increase the credit amount from the original $2,000 to $3,600 if the child is under 7 years of age.
For child dependents from the ages of 7 to 17 years old, the new tax credit amount has also been raised to $3,000 from the prior $2,000.
Unemployment Extension
For the persons still eligible for unemployment benefits in their state, an extension has been made until September 6. Those who qualify will receive an additional $300 per week from the federal government and will be available to those claiming benefits starting March 14. This payment is an extension of the FPUC (Federal Pandemic Unemployment Compensation) which was $600 previously, but had been reduced to $300 a week as of December 2020.
Hold Off On Filing!
If you haven’t yet filed your taxes yet, it may be best to wait still until the IRS publishes proper guidelines on how to do so. Waiting until this happens will benefit you because your accountant will be able to navigate the new laws correctly, so as to achieve the maximum return for you.
If you’ve already filed your taxes but noticed some of these new changes may apply to you, reach out to your tax accountant to see whether it not it would be worthwhile to amend your return so you can take advantage of the maximum benefit.
As always, don’t forget to reach out to Sinn Accounting with any questions, assistance on filing, or a free consultation.
