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: 03/12/2021
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