With the U.S. vaccinating millions of people in a day, it feels like we might be arriving at the beginning of the end of the pandemic. The government has continued to help out financially with ongoing stimulus support, but it can be hard to keep up with ongoing developments. Never fear - we have put together the latest updates on COVID-related financial policies since our
original blog.
Stimulus and Unemployment
In December 2020, a $900 billion stimulus package was passed. Americans making up to $75,000 a year should have received a payment of $600, with an additional $600 per child. Unemployed workers received an extra $400 per week in federal cash through March 14th.
On March 12, 2021 the American Rescue Plan was signed into law. With this third stimulus package. American adults and dependents will get checks up to $1,400. Payments will decrease for individuals making between $75,000 and $80,000, and individuals who make $80,000 or more will not receive any payments.
As of March 12, 2021, the $300 weekly unemployment benefit has been extended until September 6, 2021. People eligible for unemployment benefits will receive an additional $300 per week from the federal government, and the first $10,200 of benefits you received in 2020 are untaxed if you make below $150,000 per year.
If you are missing any of your earlier stimulus checks, you are still eligible to get them in your 2020 tax refund. You can check the status of your most recent stimulus check
here.
Student Loans
The emergency relief benefits for borrowers with federal student loans has been extended through September 30, 2021. If you're affected by this emergency relief, you're likely familiar with the pause in payments and interests. This pause will continue until these benefits expire at the end of September.
Taxes
By now, you've likely heard that the federal government has pushed taxes back to May 17th. So what does that mean for you? Well, it depends on your situation. If you are expecting a refund and are ready to go, then you should file! The IRS is open for business and the sooner you file, the sooner you will receive your refund. Another pro tip is to make sure you e-file your tax returns and set up a direct deposit to speed up your refund.
If you aren't expecting a refund and could do with a little extra cash flow in the immediate short term, then take advantage of the extended deadline.
If you have to file with your state, don't forget to check your state tax filing date. Many states are pushing their filing dates back in order to help out taxpayers during these challenging times.
Another benefit of the most recent stimulus package is the increase in the child tax credit. Parents will be able to receive up to $3,600 for children under 6, and $3,000 per child for children 6-17. The size of the credit decreases for individuals making between $75,000 and $200,000, and it is not available for individuals who make more than $200,000.
Over the last year, we've seen the resilience of our community - how you've used this time to improve your family's financial habits, start that side hustle and put those stimulus checks into investments to grow. With the flicker of light at the end of the pandemic tunnel, we're feeling hopeful... the future really is looking bright!
