The American Rescue Plan was recently signed into law and includes a third round of stimulus payments and many tax-related provisions. Here are some of the more prominent sections of the new legislation.
The payments are phased out based on a taxpayer’s adjusted gross income (AGI). For single taxpayers, the payment phases out between $75,000 and $80,000; for married taxpayers who file jointly, the phaseout is between $150,000 and $160,000; for heads of household, the phaseout occurs between $112,500 and $120,000. The phaseouts do not increase based on number of dependents.
Your 2020 tax return will be used to determine your AGI for purposes of the payment phaseout. If you haven’t filed your 2020 return, your 2019 tax return and corresponding AGI will be used.
There’s a lot to unpack with this new relief legislation. Stay tuned for continued updates as they become available.
Last updated: 05/19/2022
The Covid-19 Tax Resource Portal (herein after referred to as "Site") is made available as a service to our clients and others for informational purposes only. These materials and information should not be considered as, or a substitute for, accounting, tax or financial advice. While it is hoped the materials provided here are helpful as background material, it is not warranted either expressly or implied as accurate or complete. You should refrain in taking any action based upon the information provided here until you have received proper counsel.
In addition, you understand that any links to any other web site or services does not constitute endorsement of or warranty of any service, product or information provided on their site(s). These links are provided for convenience only.
While our intent is to make transmissions to and from this web site secure, it is understood that no warranty of security can be made and that unforeseen security breaches by "hackers" is a possibility, however slight.
Reproduction of part or all of the contents on this site in any form is prohibited other than for individual use only. All content on this site is copyright protected and/or trademarked as appropriate and may not be copied, duplicated or altered in any way.
In no event shall DANA MCGUFFIN CPA PC, its affiliates or suppliers of any content on this site be liable for any indirect, incidental, special, punitive damages or consequential damages of any kind, or any damages whatsoever arising out of or related to your use of the Site, the content and other information obtained therein.
© 2020 - 2022. All Rights Reserved.