American Debt Payback Fund IRS : President Biden’s American Rescue Plans
American Debt Payback Fund IRS : President Biden’s American Rescue Plans
The American Rescue Plan is delivering direct relief to the American people, rescuing the American economy, and starting to beat the virus.
The American Rescue Plan will change the course of the pandemic and deliver immediate relief for American workers. The plan will build a bridge to an equitable economic recovery and immediately reduce child poverty. In fact, a Columbia University study found that passing the plan will lift more than 5 million children out of poverty this year, cutting the poverty rate by 50%. The bill is one of the most progressive pieces of legislation in history, with more than two thirds of its tax cuts and direct payments going to families making less than $90,000 per year.
How does direct relief work under the American Rescue Plan?
Here’s what you need to know about the direct relief the American Rescue Plan provides to working families:
$1,400 per-person checks
- Single people making less than $75,000, heads of household making less than $112,500, and married couples filing jointly making less than $150,000 qualify for stimulus checks. People making up to $80,000 will receive partial payments.
- Those with dependents will receive $1,400 per person, including college students and seniors claimed as dependents.
Increase the Child Tax Credit, Earned-Income Tax Credit, and Child and Dependent Care Tax Credit
- For those without children, the American Rescue Plan increased the Earned-Income Tax Credit from $543 to $1,502.
- For those with children, the American Rescue Plan increased the Child Tax Credit from $2,000 per child to $3,000 per child for children over the age of six and $3,600 for children under the age of six – and raised the age limit from 16 to 17.
- The American Rescue Plan also increased and expanded the Child and Dependent Care Tax Credit, making more people eligible and increasing the total credit to $4,000 for one qualifying individual and $8,000 for two or more.
Extend unemployment insurance
- The American Rescue Plan extended unemployment benefits until September 6 with a weekly supplemental benefit of $300 on top of the regular $400 benefit.
- The first $10,200 of unemployment benefits will be tax-free for people with incomes less than $150,000.
Small business support
- The American Rescue Plan will provide emergency grants, lending, and investment to hard-hit small businesses so they can rehire and retain workers and purchase the health and sanitation equipment they need to keep workers safe.
- The American Rescue Plan also includes a Small Business Opportunity Fund to provide growth capital to main street small businesses in economically disadvantaged areas, including minority-owned businesses
Lower health insurance premiums and provide 100% federal COBRA subsidy
- The American Rescue Plan will lower or eliminate health insurance premiums for millions of lower- and middle-income families enrolled in health insurance marketplaces. This will help well over a million uninsured Americans gain coverage.
- A family of four making $90,000 could see their monthly premium come down by $200 per month.
- The American Rescue Plan provides a 100% federal continuation health coverage (COBRA) subsidy through September 1, ensuring that those who lose their jobs or lose their health care due to reduced hours don’t lose their health care.
