Great news for most Americans, the US House of Representatives signed off on a $1.9 trillion American Rescue Plan Act today Wednesday March 10, 2021. They approved a 3rd round of stimulus payments for American households. This bill will also benefit Americans on unemployment insurance extending benefits through September 6, 2021. Last, this bill increases the current child tax credit for 2021.
President Biden is expected to sign the bill on Friday.
Most U.S. residents with valid Social Security numbers will be eligible for the stimulus payment. Individuals with an AGI (adjusted gross income) of $75,000 a year or less and couples with an AGI of $150,000 a year or less will receive a one time payment of $1,400 either via direct deposit or check. This round of payments will be based on the income reported on 2020 tax returns. If you have not yet filled your 2020 taxes the Treasury Department will use your 2019 tax return to calculate your payment.
The IRS created a website Get My Payment to provide information regarding stimulus checks.
The American Rescue Plan will expand the child tax credit and make it fully refundable. Presently, up to $1,400 of the child tax credit is refundable to lower income individuals with children.