American Rescue Plan

Waiting may help you in the long run.

American Rescue Plan would cut taxes for some:

1. Economic impact payments 

The plan includes $1,400 stimulus checks for those who are eligible. These payments are on top of the $600 payments authorized by Congress in December.

2. Unemployment 

Biden is calling Congress to increase supplemental unemployment insurance to $400 per week through September 2021.

3. Child tax credit 

The plan would raise the child tax credit (CTC) to $3,000 per child and make it fully refundable for 2021. Additionally, the credit would be raised to $3,600 for a child under 6 years old, and 17-year-olds will be eligible.

4. EIC 

The earned income credit (EIC) would be expanded, raising the maximum amount for workers without children to approximately $1,500 (from $538 for the 2020 tax year; $543 for the 2021 tax year) and raising the income cap for those eligible to approximately $21,000 from $16,000.

5. Child and dependent care tax credit (CDCTC) 

Biden’s plan would temporarily expand a tax credit for child care so families will get money back as a credit for children younger than 13 – $4,000 for one child and $8,000 for two or more children. This credit would begin to phase out at a family AGI of $125,001, with a complete phase-out at $400,001.