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New COVID-19 Relief Legislation and Stimulus Payment (EIP3) Update
  • How much will I receive for my third stimulus payment?
    Filing Status AGI Amount AGI Phase Out Third Stimulus Payment
      Single   $75,000 or less   $80,000   $1400
      Married Filing Joint   $150,000 or less   $160,000   $2800
      Head of household   $112,500 or less   $120,000   $1400
      For each dependent, it will be an additional $1400.00.
  • How will I receive my third stimulus payment?
    Payments will be sent via direct deposit, check or debit card. Click Here to get your Stimulus Payment #3 status.
  • Can I update my information with the IRS?
    The IRS Get My Payment tool is not currently accepting any updates.
  • When will I get paid?
    The settlement date for the first round of payments will be Wednesday, March 17th. Some Americans may see the direct deposit payments as pending or as provisional payments in their accounts before the official payment date of March 17. The IRS will have multiple payment dates, not all will be sent with the first round.
  • Who is eligible for the third stimulus payment under American Resuce Plan?
    Eligible individuals are all individuals except, non-resident aliens, individuals who are claimed as a dependent on another tax return and estates or trusts.
  • How will I get the third stimulus payment?
    No action is needed by most taxpayers; the payments will be automatic and, in many cases, similar to how people received the first and second round of Economic Impact Payments in 2020.

    The third round of Economic Impact Payments (EIP3) will be based on the taxpayer's latest processed tax return from either 2020 or 2019. This includes anyone who successfully registered online at IRS.gov using the agency's Non-Filers tool last year, or alternatively, submitted a special simplified tax return to the IRS. If the IRS has received and processed a taxpayer's 2020 return, the agency will instead make the calculation based on that return.

    In addition, the IRS will automatically send EIP3 to people who didn't file a return but receive Social Security retirement, survivor or disability benefits (SSDI), Railroad Retirement benefits, Supplemental Security Income (SSI) or Veterans Affairs benefits. This is similar to the first and second rounds of Economic Impact Payments, often referred to as EIP1 and EIP2.

American Rescue Plan Act of 2021 --TAX LAW CHANGES
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  • Unemployment Benefits
    For taxpayers with an AGI (Adjusted Gross Income) below $150,000, the first $10,200 of unemployment benefits will be tax exempt. This change is retroactive for 2020 tax returns. If you have already filed your 2020 tax return, you may need to amend your return, however, we are waiting for guidance from the IRS on how to implement and will update the software and post more details as those become available.

    Update as of 4/1/2021

    For taxpayers who have not yet filed: The software is now updated to calculate the unemployment exclusion of up to $10,200 for each person. There are no additional entries you will need to make, just enter the full amount of your 1099-G and the software will automatically calculate and apply the exclusion according to the worksheet the IRS has provided.

    For taxpayers who have already filed: There is no need for taxpayers to file an amended return unless the calculations make the taxpayer newly eligible for additional federal credits and deductions not already included on the original tax return.

    The Internal Revenue Service announced today that it will take steps to automatically refund money this spring and summer to people who filed their tax return reporting unemployment compensation before the recent changes made by the American Rescue Plan.

    Click here for more details
  • Child Tax Credit
    The Sec. 24 Child Tax Credit has been expanded in many ways for 2021. The credit has been increased to $3,600 per child for children under 6 and $3,000 per child for children ages 6-17. The credit has also been expanded to include children aged 17 as qualifying children.

    The credit will be fully refundable in 2021. The increased credit amount phases out for taxpayers with an AGI over $150,000 for married taxpayers filing jointly, $112,500 for heads of household, and $75,000 for others, reducing the expanded portion of the credit by $50 for each $1,000 of income over those limits.

    The IRS is also directed to estimate taxpayersí child tax credit amounts and pay monthly in advance one-twelfth of the annual estimated amount. Payments will run from July through December 2021. The rest of the credit will be reconciled and claimed on the 2021 tax return. The IRS must set up an online portal to allow taxpayers to opt out of advance payments or provide information that would be relevant to modifying the amount.
  • Earned Income Tax (EIC) Credit
    The EIC credit will be expanded and eligible for more taxpayers; including taxpayers that donít have children. This will be for the 2021 tax return. More details will be posted as they become available with IRS guidance.
  • Child and Dependent Care Credit
    The act increases the exclusion for employer-provided dependent care assistance to $10,500 for 2021.

    And effective for 2021 only, the credit will be refundable. The credit will be worth 50% of eligible expenses, up to a limit based on income, making the credit worth up to $4,000 for one qualifying individual and up to $8,000 for two or more. Credit reduction will start at household income levels over $125,000. For households with income over $400,000, the credit can be reduced below 20%.
  • Student Loans
    The act makes any discharge of student loan debt after December 31, 2020 and before January 1, 2026, not includable in gross income.
  • Premium Tax Credit
    The act expands the Sec. 36B premium tax credit for 2021 and 2022 by changing the applicable percentage amounts in Sec. 36B(b)(3)(A). Taxpayers who received too much in advance premium tax credits in 2020 will not have to repay the excess amount. A special rule is added that treats a taxpayer who has received, or has been approved to receive, unemployment compensation for any week beginning during 2021 as an applicable taxpayer.

    Update as of 4/13/2021

    The IRS has announced that taxpayers with excess APTC for 2020 are not required to file Form 8962, or report an excess advance Premium Tax Credit repayment on their 2020 Form 1040 or Form 1040-SR, Schedule 2, Line 2, when they file.

    OLT has now updated the software to reflect this.

    Taxpayers who have already filed their 2020 tax return and who have excess APTC for 2020 do not need to file an amended tax return or contact the IRS. The IRS will reduce the excess APTC repayment amount to zero with no further action needed by the taxpayer. The IRS will reimburse people who have already repaid any excess advance Premium Tax Credit on their 2020 tax return.

    Click here for more details