Information about American Recovery Plan (ARP)

Did I mention I do taxes? I am an enrolled agent and have worked for H and R Block for 24 years.

It is somewhat safe to say that the 1.9 Trillion ARP plan represents one of the most significant pieces of US legislation in history. Here are some of the highlights you might want to be aware of, whether you are in the US or Israel.

• $1400 stimulus payment per person. This will be mailed out or direct deposited in the next week. They have changed the phase outs for it as well as who qualifies.

• Exclusion for the first $10,200 unemployment benefits. This was put in at the last minute and we are not sure how this is going to be changed in the 2020 returns. People who already filed will have to file amendments, but we do not know how or when.

• Expansion of child tax credit. This will increase from $2000 to $3600 for each child under 6 and younger and $2000 to $3000 from ages 6-17. In the US, checks will be issued monthly to people starting in July 2021 for the last half of the year.

  • In 2021, Earned Income Credit will be increased for childless singles ages 19 or over and no maximum age.

  • If you have ObamaCare, the premium tax credit has been expanded and the income level to get the credit will be raised.

  • Additional unemployment compensation of $300 per week has been expanded to September, 2021

There are numerous other changes, but these are the major ones. Feel free to ask me any questions and I will try to answer. Remember that this is fluid as to how this will impact both the 2020 and 2021 taxes.

Looking forward to doing an Aliyah on June 9th and helping with taxes next year!!!