Скачать или смотреть 3rd round Stimulus Check and Tax-free Unemployment Compensation Update in Amharic (በአማርኛ)

American Rescue Plan Act of 2021 expands benefits in many areas including the expansion of child tax credit, enhancement to the child and dependent care credit for 2021, extension of unemployment benefit, etc. Today’s video focuses on the two changes that applies to individual taxpayers see below: -

 Third round Stimulus Checks in the amount of $1,400 per eligible individual. Eligibility has been expanded from including only qualifying children under the age of 17 to all dependents in the household, including parents who are claimed as dependents. However, the phase out limitation of the new stimulus checks are more restrictive.
 Up to $10,200 of 2020 unemployment compensation per worker is tax free, provided a taxpayer’s AGI is less than $150,000. It appears that the $150,000 AGI limit applies uniformly to all filing statuses. In the case of joint filers, each spouse can receive up to $10,200 of unemployment compensation tax-free, permitting up to $20,400 for the household, as long as you remain below the phaseout threshold.

Please leave me a comment if you have any questions or need any clarification about the stimulus check and unemployment compensation.

Beza Asrat, CPA, CFEI
Financial Wisdom Coaching LLC
Facebook:   / thefinancialwisdomcoaching  

Thank you!