The American Rescue Plan was signed into law on March 11, 2021, with a lot of changes for both individuals and businesses. Here is a brief synopsis of some of the relief. If you have already filed your tax return and the new legislation changes that, please wait for the updated instructions before filing amended returns.
For individuals, here are some key points –
- $1,400 Economic Impact Payments to begin immediately. Taxpayers will receive $1,400 for each person claimed on the 2019 tax return, with income limits phasing out $75,000 ($150,000 for married taxpayers).
- $300 weekly federal unemployment through 9/6/21.
- For 2020, unemployment benefits received will be non-taxable on the first $10,200 received by each taxpayer, with income lower than $150,000. Maryland had previously enacted the RELIEF Act which excluded all unemployment for 2020 and 2021 from state tax for individuals earning less than $75,000 ($150,000 for married couples).
- For 2021, the Child Tax Credit will be increasing to $3,600 for children under 6 and $3,00 for children 7-17. This credit will phase out with earnings above $75,000 ($150,000 for married couples). There may be advances paid on this credit later in the year.
For Businesses, here are some key points –
- Additional PPP funding with less stringent qualifications.
- Expanded Employee Retention Credit to continue through December 31, 2021, with some additional enhancements.
- Restaurant Revitalization Fund for pandemic-related revenue loss.
Recent Comments