What you need to know about the stimulus relief bill

The Covid-19 pandemic has been a very stressful time for all Americans. Many individuals have been forced to file unemployment because they have been unable to work and high risk residents have faced challenges in obtaining a stable income during these unstable times. Much of the population has struggled financially on top of the emotional and physical strain the pandemic has caused. With such a discrepancy from normalcy, the people of this nation are reaching out for a helping hand and a sense of comfort during these challenging times. With Joe Biden as our new President, he has made some changes towards the Covid-19 relief stimulus checks in the effort to alleviate some of the financial hardships Americans are facing during these times.These changes greatly vary from the previous two stimulus checks you have received under President Trump based on the new qualifications and groups of individuals eligible to receive aid money. President Biden’s new $1.9 trillion bill allocates a greater magnitude of money towards relief for utility, rental, and mortgage costs, as well as more funding for schools and insurance premiums. 

All you need to know about the third stimulus relief check

Who will receive the third stimulus check?

Unlike the maximum limit of $100,000 in annual income needed to qualify for President Trump’s stimulus checks, the stimulus checks will only apply to individuals making less than $80,000 annually. However, those who do qualify will be receiving $1,400 direct payments into their bank accounts as soon as this weekend. Couples who file taxes jointly have a new income cap of $150,000 of conjoined income to receive the stimulus check. On the contrary, couples who have made a joint annual income of $160,000 or more will not be receiving a third stimulus check. The income cap for couples during the first two stimulus checks was $200,000 so be sure to note the massive change in income limit for couples when inquiring if you are qualified to receive the third stimulus check. Head of household filers, such as single parents have an income cap of $150,000. A married couple with two children is subject to receive up to $5,600 in aid. On the contrary, a single parent with two kids would receive up to $4,200 in aid. Additionally, you will receive $1,400 for each of your young dependents.The federal government will utilize your 2020 adjusted gross income based on your tax returns when determining how much aid money you are subject to in relation to your income.

Will adult dependents receive this stimulus check?

It has been decided that adult dependents will in actuality receive this stimulus check to help them cover expenses brought forth by the Covid-19 pandemic. These adult dependents potentially include college students who will be receiving $1,400. This is also a great sign in regards to including adult dependents with disabilities by granting them a stimulus check to help fund the costs they may not be able to afford because of the financial strain brought upon the population by the pandemic and its consequences on the economic state of this nation. This stimulus check will apply to four different populations that the previous two checks did not include under President Trump. President Biden’s new stimulus package will include High school students 17 or older claimed by someone else, college students claimed by someone else, elderly adults claimed by someone else, and disabled adults claimed by someone else.

How will President Biden’s new stimulus package impact the child tax credit?

The child tax credit was initially created 24 years ago with the purpose of aiding parents in helping to pay for their children due to financial difficulties. However, with the Covid-19 pandemic, these financial circumstances have only increased in severity, therefore creating a directly correlated response in regards to the child tax credit. The child tax credit will be expanded to $3,600 per child under the age of 6 and $3,000 for each child under the age of 17. Based on current changes, the government will now be conducting monthly payouts instead of you having to claim the credit when you file your tax returns. Providing these monthly payments would provide regular income, rather than a large sum of money granted upon the completion of taxes. This tax credit will be a lifesaver and massive reliever for parents who have lost their jobs in the face of the Covid-19 pandemic and are struggling to provide their children with everything they need to thrive. 

What impact does President Biden’s new stimulus plan have on unemployment payments?

President Biden’s new stimulus package provides a bonus of $300 per week in regards to unemployment funding. This pandemic aid will be extended until September 6 in order to help people get back on their feet after suffering job loss during these challenging times. Additionally, a new tax waiver on the first $10,200 of unemployment benefits will become available. This will extend the CARES Act Programs until early September. The Pandemic Unemployment Assistance benefits will increase to a minimum of 79 weeks, or 86 weeks in high-unemployment states. This will expand Public Emergency Employment Compensation up to a maximum of 53 weeks. The unemployment payments aim to reduce the massive poverty population within the nation and reduce the financial burden the pandemic has brought forth upon the American people. 

Does President Biden’s new stimulus package include information on food assistance programs?

Yes, President Biden will extend the Supplemental Nutrition Program (SNAP) program benefits till September to provide the populations in need of food assistance. The program, however, will not extend the Pandemic-EBT program which would have been beneficial in the face of future emergencies and crises. By providing specific grocery benefits for the meals that children miss at school due to the in-person school shutdowns, parents were able to feed their children despite the financial hardship they were facing from potentially losing their jobs during the pandemic. During the mid-January census, 24 million parents in the U.S. stated that they did not have enough food to feed their families, while prior to the pandemic only 8.5 million adults stated that they did not have enough food. Thus, President Biden’s new proposal would extend 15% maximum SNAP Benefit increase so that all the parents in need could feed their children.This would include approximately $27 more per person per month in SNAP Benefits. This would total approximately an additional $100 per month for a family of four. 

How will President Biden’s third stimulus check eligibility rules affect older adults?

If you have a pension or investments that are taxable, that would have an impact on your adjusted gross income, which would influence your eligibility for receiving the third stimulus check. If you're over age 65 and a recipient of Supplemental Security Income or Social Security Disability Insurance, you were eligible for the  first and second stimulus check under President Trump, and will be eligible for a third under President Biden.  Your gross income does not include any Social Security Benefits unless half your Social Security benefits plus your other gross income and any tax-exempt interest is more than $25,000 filing single or $32,000 if married, filing jointly. Qualifying relatives may be considered adult dependents and filed as such on tax paperwork. An adult who has a gross income of less than $4,200 annually and lives with the family all year can be declared an adult dependent on the tax paperwork. If you're 65 years-old or older, you should file taxes only under the following circumstances: You are a single filer with at least $13,850 in gross income or you are a head of household with at least $20,000 in gross income. Other qualifications of filing taxes after 65 years old are if you are married filing jointly (if one spouse is 65 or older, $25,700 in gross income; if both spouses are 65 or older, $27,000 in gross income), if you are married filing separately, or if you are a qualifying widow(er) age 65 or older with at least $25,700 in gross income.

For further Elder Care information please contact the Law Office of Inna Fershteyn at 718-333-2395 to be informed of your stimulus check qualifications.