What’s Included in the $1.9 Trillion Covid Relief Package
The House has passed a $1.9 trillion coronavirus-aid bill. The vast relief package, known as the American Rescue Plan, was approved in the Senate a few days earlier and now goes to President Biden who is expected to sign it.
The legislation will send $1,400 checks to most Americans, extend unemployment insurance, expand the child tax credit and allocate billions of dollars for coronavirus testing, among other things.
$1.9 Trillion Package
These are some of the major points of the legislation:
- $1,400 direct payments to most Americans and their dependents. Checks start phasing out above $75,000 in income for individuals and are capped at people who make $80,000. For joint filers checks start phasing out above $150,000 in income and are capped at joint filers that make up to $160,000. The government will base eligibility on Americans’ most recent filed tax return.
- $300 per week jobless aid supplement and programs making millions more people eligible for unemployment insurance are extended until Sept. 6.
- An individual’s first $10,200 in jobless benefits are tax-free.
- The child tax credit is expanded for one year. It will increase to $3,600 for children under 6 and to $3,000 for kids between 6 and 17.
- $20 billion for Covid-19 vaccine manufacturing and distribution, along with roughly $50 billion into testing and contact tracing.
- Additional $25 billion in rental and utility assistance and about $10 billion for mortgage aid.
- $350 billion in relief to state, local and tribal governments.
- $120 billion to K-12 schools.
- Supplemental Nutrition Assistance Program benefit increased by 15% through September.
- Nearly $30 billion in aid to restaurants.
- The legislation expands an employee retention tax credit designed to allow companies to keep workers on payroll.
- Lower the threshold for companies to send a 1099K. Until now it was for those exceeding $20,000 in gross receipts in over 200 transactions. Now Form 1099K will be sent out to sellers who make sales of more than $600 (HT: Doctor of Credit). This could have an impact for Amazon and eBay sellers.
The bill has undergone some changes since it was first revealed. One main change is the lower weekly jobless aid supplement of $300, compared to $400. It’s also important to note the changes for sellers that will require you to pay taxes if you have more than $600 in sales at popular market places.
The bill is expected to be signed by President Biden on Friday.