Details of the American Rescue Plan that Affect Your Business and Your Clients
March 15, 2021 Government & Community Affairs
Congress passed and President Joe Biden recently signed into law the American Rescue Plan. The bill designed as a stimulus for the recovery of the economy due to Covid-19 contains many provisions that affect you and your clients.
Here are the provisions in the recently passed American Rescue Plan that may affect you or your business:
- The Pandemic Unemployment Assistance (PUA) that many real estate professionals have been collecting has been extended until September 6, 2021. This includes the additional $300 per week federal benefit enhancement through that time.
As an independent contractor (if your income has been affected by the pandemic) , you can still apply for the Pandemic Unemployment Assistance and it can be retroactive back to when you were affected. Start the process here.
- If you have been taking PUA, the bill excluded up to $10,200 in unemployment compensation from taxation for those with adjusted gross income (AGI) of $150,000 or less, beginning in tax year 2020.
- Allocates $21.55 billion in new money for rental assistance, on top of the $25 billion allocated in December.
- Allocates $10 billion for a Housing Assistance Fund that will allow state housing finance agencies to help homeowners with COVID-19 hardships.
- A one-year increase in the child tax credit, paid in monthly installments, including $3,000 a year for each child ages 6 to 17, and $3,600 a year for each child under age 6 for couples who make $150,000 or less and single parents who make $112,500 or less.
- Provides $1,400 stimulus checks per person and per dependent, phased out completely for individuals earning $80,000 per year and couples earning $160,000 per year.