The $1.9 trillion American Rescue Plan is bringing significant financial relief. Here's what you can expect from this new stimulus bill.

  • Additional stimulus checks. Individuals earning up to $75,000, heads of household up to $112,500, and couples filing jointly up to $150,000 will receive $1,400. Payments will decrease for incomes exceeding these thresholds, disappearing entirely at $80,000 for individuals, $120,000 for heads of household, and $160,000 for couples. Families will also get $1,400 for each dependent, expanding eligibility to all dependents regardless of age. Payments will rely on your most recent IRS income records, either from 2020 or 2019. If you didn't qualify in 2019 but did in 2020, filing your taxes quickly could make a difference.
  • Federal unemployment benefits will remain at $300 per week. This assistance extends until September 6. The Pandemic Unemployment Assistance for gig and self-employed workers is also extended through this date. Moreover, an additional $100 per week is available for those who may not qualify for adequate state benefits.
  • State unemployment benefits will be prolonged for 29 weeks. This means a total of 79 weeks of support will be available.
  • PPP funding will be replenished. Businesses that have faced hardships are eligible for second loans. Additionally, $28.6 billion is allocated for restaurant debt relief. The Restaurant Revitalization Fund offers grants up to $5 million for individual restaurants and $10 million for groups. However, while the Federal government won't tax PPP loans, state taxes may apply. Here's a map for reference.
  • The American Rescue Plan does not extend the eviction moratorium past March. However, it allocates $27 billion for rental assistance and an additional $10 billion for mortgage relief.

We understand you may have questions. Here are some answers, but keep in mind information is constantly being updated.

WHEN CAN I EXPECT MY NEW STIMULUS CHECK?

Payments should arrive soon. Previous checks were issued just days after the law passed, and the IRS is better equipped now to process payments. Most funds will go out via direct deposit, with some sent as checks or pre-paid debit cards. If you received less than you qualified for previously, you can claim a tax credit on your 2020 return, which could enhance your refund or reduce your tax liability. As noted by the IRS: This credit typically boosts your tax refund or decreases the tax owed.

WHAT DO I NEED TO DO TO RECEIVE UNEMPLOYMENT BENEFITS?

If you're already receiving benefits, no action is needed. If you're not currently enrolled, due to lapsed benefits, visit your state unemployment website for guidance. Expect potential delays of weeks for any reinstatement of benefits.

AM I ELIGIBLE FOR MORTGAGE RELIEF?

The mortgage forbearance initiated by the CARES Act is still in effect, allowing for six-month periods of forbearance on federally-backed loans. In February, an extension was approved through June, with an additional potential six-month period, totaling up to 18 months. Reach out to your lender before the end of June to request this.

WHAT'S THE STATUS OF MY STUDENT LOANS?

Federal student loan payments are paused until January 31, and interest rates are set to 0%. This means any payments made will go directly to the principal. Although earlier proposals extended this pause until April, that did not make it into the final bill. Notably, borrowers will not face income taxes on any forgiven student loan debt, a key point in discussions around potential debt cancellation.

WHAT IF I CAN'T AFFORD MY BILLS?

Don't hesitate to reach out to your lenders. Explore state and local assistance programs, as well as options through utility companies. Here's a helpful collection of resources and a guide for finding financial support if you're struggling to manage your bills.