The Rescue Plan for Americans has been passed almost a month ago that will provide a stimulus check worth $1,400, $3,600 tax credit for children, and unemployment benefits of $300.
This new stimulus proposal will offer an additional tax exemption of $10,200 for the unemployed insurance beneficiaries. These are the citizens who are given more time for tax filing with an extended 17th May deadline.
Bonus Unemployment Benefits For All Americans
This stimulus bill has promised to provide a weekly bonus of $300 till 6th September. Most US states will automatically have their benefits renewed for the unemployment insurance beneficiaries. However, few unemployed workers might face problems during the BYE or year-ending date.
The state beneficiaries’ requirements for a new claim will vary. The IRS intends to exempt the preliminary $10,200 if the gross income after adjustment is below $150,000. Citizens who already filed their taxes will receive their refund after recalculation.
The $1.9 trillion relief package for COVID-19 by President Joe Biden has added $300 every week in addition to state benefits. The previous version of this bill suggested a federal bonus of $400 while the CARES Act had suggested $600 each week.
13 states are not providing any tax breaks and IRS gave detailed instructions regarding tax forms for exemption. States have also put a limit on the number of unemployment benefits received by an American. Some states are giving a mere 12 weeks while others are giving 26 to 30 weeks. Since the pandemic is lasting longer, the federal government is likely to increase the extension to 53 weeks.
Eligibility criteria are being decided by the states but the main caveat included citizens furloughed or jobless without any fault of their own. There has not been any plan for what is to happen after the end of this $1.9 trillion stimulus package.