If you’ve been following the news lately, you’ve probably heard that a new COVID-19 bill was signed by President Biden on March 12, 2021. The bill is called the American Rescue Plan, and here are the items within it that could impact you as a caregiver.
Stimulus checks
Since COVID-19 began, two direct payments of up to $1,200 and $600 respectively have been delivered to most Americans. The American Rescue Plan includes a payment of up to $1,400 to help make ends meet, plus an extra $1,400 for each dependent you have.
Extension of unemployment benefits
The CARES Act expanded unemployment benefits so workers who were laid off due to COVID-19 could have additional income while they looked for a new job. Those benefits ran out, but were extended into March by the Continuing Appropriations Act. The American Rescue Plan once again extends unemployment benefits to laid off workers through the end of August and provides an additional $300 weekly on top of what the state provides.
A boost in the Child Tax Credit
Anyone with kids can take this tax credit to help offset the cost of having children. Previously, the Child Tax Credit was $2,000 per child, but the American Rescue Plan increases this amount to $3,000 per child and $3,600 if your child is 5 years old or younger. Additionally, the age limit of the Child Tax Credit raises from 16 to 17 years old. Half of the tax credit you’re eligible for is scheduled to be given out in advance in monthly payments running from July through December.
Expansion of the Earned Income Tax Credit eligibility
Low-income workers can take the Earned Income Tax Credit (EITC) to forgive some, or all, of the taxes they owe. The American Rescue Plan expands the eligibility to take the EITC and adjusting how much the credit will be for certain workers.
We hope this gives you a better idea of what is in the American Rescue Plan. There should be benefits available to most caregivers so please share this article with others you know who may have questions.
