The American Rescue Plan Act gives most households direct relief as families continue to experience tremendous stress and the financial burden brought on by the pandemic 

 

ECONOMIC IMPACT PAYMENTS  

The American Rescue Plan provides working families an additional Direct Payment of $1,400 Per Person – bringing the total relief payment to $2,000 per person  

In December, Congress enacted a Covid relief package that provided a direct payment of $600 per person. The American Rescue Plan Act builds on that down payment, providing another $1,400 per person. The bill uses the same income threshold as previous legislation to determine which individuals receive the full $1,400 payment, before the phase-out begins.  

  • If you made less than $75,000 in 2019 or 2020, you will be eligible for the full payment of $1,400. Couples who filed jointly and made less than $150,000 will get $2,800, and parents will be eligible for a $1,400 payment for qualifying children in the household. 

  • If you made between $75,000 and $80,000 in 2019 or 2020, are a head of household with income between $112,500 and $120,000, or are a married couple with incomes between $150,000 and $160,000 you will receive a partial benefit. The payment decreases to zero for an individual making $80,000 or more or a couple making $160,000 or more. 

  • Unlike the two prior direct payments, families can receive the $1,400 for dependents over age 16, such as elderly or disabled relatives, college students, or 17-year-olds.   

If you’ve been working and filing taxes since 2018you do not need to sign up or fill out a form to receive your payment. If you have provided bank information to the IRS in the last two years, that's where the money will be sent. If not, the IRS can mail a check to your "last known address," and it has 15 days to notify you of the method and amount of the payment. They will send a phone number and appropriate point of contact so you can tell them if you did not receive it. 

The IRS warns against scams and fraudulent attempts designed to steal money and personal information from taxpayersYou can learn more to help protect against these scams by visiting the IRS website here: https://www.irs.gov/compliance/criminal-investigation/irs-criminal-investigation-warns-taxpayers-about-new-wave-of-covid-19-scams-as-second-round-of-economic-impact-payments-are-delivered  

 

UNEMPLOYMENT ASSISTANCE  

  • The American Rescue Plan extends unemployment benefits, continuing the Federal Pandemic Unemployment Compensation (FPUC) through September 6, 2021, and keeps the weekly benefit at the current $300 per week. Of that, up to $10,200 in unemployment benefits received in 2020 will be exempted from federal income taxes for households making less than $150,000. 

  • The bill also includes extensions of the Pandemic Unemployment Assistance (PUA) program, which expands eligibility for the self-employed, gig workers, freelancers and others in non-traditional employment who do not qualify for regular unemployment insurance. 

 

CHILD TAX CREDIT 

  • The American Rescue Plan expands the child tax credit for 2021 to $3,000 from $2,000 for each child ages 6 to 17. Children 5 and younger would be eligible for $3,600. 

 

HOUSING ASSISTANCE 

  • The American Rescue Plan provides $27.5 Billion for Emergency Rental Assistance, to help ensure struggling families continue to have a safe place to live during this pandemic 

  • $22.5 billion for emergency rental and utility assistance to states, territories, counties, and cities to help stabilize renters during the pandemic, and help rental property owners of all sizes continue to cover their costs;  

  • $5 billion for emergency vouchers to transition those experiencing or at risk of homelessness, survivors of domestic violence, and victims of human trafficking to stable housing;  

  • $100 million for rural housing;  

  • $750 million for Native American housing;  

  • $100 million for housing counseling;  

  • and $20 million for fair housing. 

  • Provides $10 Billion to help homeowners struggling to afford their housing as a result of the coronavirus pandemic by providing them with direct assistance with mortgage payments, property taxes, property insurance, utilities, and other housing related costs.  

  • Provides $4.75 billion for state and local governments – through the HOME Investment Partnership program – to finance supportive services, affordable housing and the acquisition of non-congregate shelter spaces for individuals experiencing homelessness during this pandemic. 

 

UTILITIES ASSISTANCE 

  • $4.5 billion to help low-income households pay their electric bills through the Low-Income Home Energy Assistance Program (LIHEAP). 

  • $500 million to help low-income households pay their water and wastewater bills through the Low-Income Household Drinking Water and Wastewater Emergency Assistance Program established by Congress at the end of 2020.