Latest Updates on the Third Stimulus Payment
Apr. 16, 2021
The American Rescue Plan Act of 2021 suspends the requirement that taxpayers to pay back excess advance payment of their Premium Tax Credit if they received more income in 2020 than they were projected or estimated to make. TaxAct’s software will determine if Form 8962 needs to be filed. Taxpayers do not need to report the excess advance of the Premium Tax Credit repayment on their 2020 taxes. Taxpayers that had excess of their Premium Tax Credit and filed their taxes before the American Rescue Plan was signed, do not need to file an amended return or contact the IRS. The IRS will reduce the repayment amount to zero with no action needed from the taxpayer. The IRS will reimburse those who have already repaid any excess advance Premium Tax Credit on their 2020 tax return.
Mar. 31, 2021
The IRS has released that they will automatically recalculate taxes on unemployment benefits for those that filed their taxes prior to the changes made by the American Rescue Plan. The unemployment exclusion makes the first $10,200 of unemployment nontaxable for each taxpayer that made less than $150,000 AGI in 2020, and the first $20,400 if married filing jointly. The money will automatically be refunded to taxpayers that are eligible, and already filed, this spring and summer with the first refunds expected to be made in May. The IRS will do the recalculations in two phases. First they will start with those eligible for the up to $10,200 exclusion, then they will adjust returns for those married filing jointly taxpayers who are eligible for the up to $20,400 exclusion and others with more complex returns. There is no need for taxpayers that have already filed to amend their returns to receive the unemployment benefit unless the calculations make the taxpayer newly eligible for additional federal credits and deductions not already included on their original tax return.
Mar. 22, 2021
The IRS has stated that taxpayers that filed their taxes before the American Rescue Plan was passed and qualify for the unemployment exclusion, do not need to amend their return to receive the benefit. The IRS will augment returns based on the new exclusion and provide updated return payments, as applicable. The unemployment exclusion makes the first $10,200 of unemployment nontaxable for each taxpayer that made less than $150,000 AGI in 2020.
Mar. 17, 2021
Following the passing of the American Rescue Plan, the IRS announced that the tax deadline for individuals filing federal taxes for the 2020 tax year has been automatically pushed back from April 15, 2021 to May 17, 2021. The IRS urges taxpayers who are due a refund to file as soon as possible. Most tax refunds associated with e-filed returns are issued within 21 days. The extension does not apply to estimated tax payments that are due on April 15, 2021. These payments are still due on April 15, 2021.
The May 17, 2021 deadline does not apply to individuals and business that file federal taxes in the states of Texas, Oklahoma and Louisiana. The deadline in these states was already extended to June 15, 2021 after FEMA declared their February storms as a natural disaster.
The deadline postponement to May 17, 2021 does not apply to state tax payments or deposits or payments of any other type of federal tax. Individual state filing and payment deadlines vary and are not always the same as the federal filing deadline. The IRS urges taxpayers to check with their state tax agencies for those details.Learn more about the deadline extension on our blog
Mar. 13, 2021
The IRS is reviewing their plans for implementation of the newly passed American Rescue Plan Act. The IRS stated they will provide additional guidance on the provisions that could affect their 2020 tax return. This includes the retroactive provision that makes the first $10,200 of 2020 unemployment benefits nontaxable. Those that need to file unemployment benefits are advised to wait until tax software companies like TaxAct have updated their software to support the new change. For those that have received unemployment last year and already filed their 2020 return, the IRS emphasizes that they should not file an amended return at this time and wait until the IRS issues more guidance. TaxAct will continue to update customers as product updates are made available.
Mar. 11, 2021
President Biden has officially signed the American Rescue Plan into law today. The White House press secretary has said the direct payments could begin depositing in bank accounts as early as this weekend.Learn more about the third stimulus package and what it means to you on our blog
Mar. 10, 2021
Congress has passed the American Rescue Plan. President Biden has confirmed he will sign the bill Friday afternoon, March 12, 2021. Here are the quick facts about the third stimulus plan you need to know:
Individuals earning $75,000 or less AGI per year will receive $1,400
Married couples filing jointly earning $150,000 or less AGI per year will receive $2,800
Head of household filers earning 112,500 or less AGI will receive $1,400
Each dependent claimed will be an additional $1,400
Federal unemployment benefits of $300 a week have been extended through Sept. 6, 2021
Unemployment benefits will be tax-free on the first $10,200 received in 2020 for households making less than $150,000 per year
Unsure what to do next? If you made less money in 2020, it is recommended you complete your tax filing ahead of the signing to ensure you receive the maximum stimulus payment you qualify for. The IRS also recommends you file your taxes soon to confirm they have your most up to date information and allow for a quick delivery of stimulus payment.Learn more about the third stimulus update on our blog
Mar. 6, 2021
Senate has passed an amended $1.9 trillion COVID-19 stimulus bill. The amendment to the American Rescue Plan includes a quicker phase out of recovery rebate credits’ (stimulus payments) income window. Under this plan, the payments completely phase out for single taxpayers with an AGI over $80,000, married taxpayers who file jointly with an AGI of $160,000 and head of households with an AGI of $120,000. The amendment also provides $300 a week in federal unemployment benefits through September 6, 2021 and allows for the first $10,200 to be tax-free in 2020 for households making less than $150,000 per year. The bill has now been passed back to the House for approval, and then will be sent to President Biden’s desk to be signed into law.
Mar. 3, 2021
House of Representatives have passed the American Rescue Plan (a third stimulus payment). The bill is now with the Senate and is expected to be voted on this week. This comes as the enhanced unemployment insurance is set to expire on March 14, 2021. The IRS continues to encourage people to file their 2020 tax returns to ensure they have the most up to date information in anticipation of this third stimulus payment.
Feb. 22, 2021
The state of California passed a new COVID-19 economic relief package called the Golden State Stimulus. Part of that package granting qualifying individuals and families a one-time stimulus payment of up to $600. To see if you qualify for the payment, check out our FAQs below.
Feb. 18, 2021
House democrats are aiming to vote on the $1.9 trillion federal rescue package at the end of next week. The current goal is to approve the package before the enhanced unemployment insurance expires on March 14, 2021. To prepare for the possibility of a third stimulus payment, the IRS urges filers to consider filing their 2020 tax returns as soon as possible.
Feb. 15, 2021
The state of Maryland has passed the RELIEF Act of 2021, which provides $1 billion in emergency coronavirus relief to individuals and small businesses. The package includes stimulus payments of up to $500 and $300 for qualifying individuals. For more information on whether you qualify to receive a payment, read our FAQs below.
Feb. 9, 2021
The House Ways and Means Committee released the first draft of the COVID-19 relief bill and will begin marketing up the bill on Wed., Feb. 10. Final votes on the bill by the House are expected to occur on Fri., Feb. 12. Senate action is expected in the next couple of weeks.
Feb. 5, 2021
The Senate approved a budget resolution that clears the path for the American Rescue Plan to pass through budget reconciliation. (Reconciliation means the bill will only need a simple majority of votes to pass.)
Jan. 14, 2021
President Biden proposed a $1.9 trillion stimulus bill called the American Rescue Plan which includes a third round of Economic Impact Payments (also known as stimulus payments). This plan would give qualifying individuals an extra $1,400 in stimulus money.
*Read the FAQs below for more details related to each of these updates.
Third Stimulus Payments FAQ
What you need to know.
See how much to expect if you qualify for a 3rd stimulus check.
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