Details of the American Rescue Plan that Affect Your Business and Your Clients

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.

What You Need to Know:

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.

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