The American Rescue Plan, passed by Congress and signed by President Biden, has been discussed mainly for the $1,400 economic impact payments many Americans received to ease financial hardship and boost the economy. Bur several other provisions of the ARP are worth discussing too.
Tax relief for unemployment compensation
Another provision in the ARP waives taxes on the first $10,200 that low and moderate income people received in unemployment compensation in 2020. This tax relief covers those who received unemployment benefits through federal programs and those who received benefits through their state’s unemployment fund.
Forgiveness of Premium Tax Credit payments
The ARP temporarily raised the earnings limits so that higher earners are now eligible for Premium Tax Credits (PTCs). This means that people who found health insurance through the marketplace to be too expensive may now be able to afford it. Additionally, many of those who would have to pay because they receive too high of a tax credit will now have those payments forgiven.
The many changes brought by the American Rescue Plan can be difficult to understand. For questions about the American Rescue Plan and your taxes, contact David Kreider at
There’s a lot in the American Rescue Plan passed by Congress to help people in these difficult economic times. First is the stimulus payment going to many Americans. If you received the last two stimulus payments but haven’t received the current one, there are several reasons that could happen.
Attention all of you who don’t have to file federal taxes, and those who do file but wait until the last minute: This year, everyone should consider filing federal taxes and filing them early.
The Coronavirus Aid, Relief and Economic Security (CARES) Act, which became law in March 2020 - and its extended relief bill passed in December 2020 - included numerous provisions designed to help individuals and businesses as the economy suffered during the COVID-19 pandemic.
Well you made it through the holidays and now it's time to focus on other things -- like filing your taxes. Most people know that the standard deduction for all filers has nearly doubled, but have no idea how their taxes will turn out.
Now that children (and grandchildren) are heading back to school in Arizona, it's that time of year when you’ll to be asked to contribute to local public or private schools -- whether it’s for donated school supplies, field trip fees, fund raisers or cash contributions.
The TCJA has good news for businesses. If your business is a corporation, the tax rate has been reduced to a flat rate of 21 percent. Make a profit of $1000, you pay $210. Simple. Alternative Minimum Tax (AMT) is eliminated effective in 2018.
Let's say you have a skill that you're really good at like pottery, woodworking, or making jewelry and you want to start a business to defer some of your costs. If you're really serious, first ask yourself, is it really a business or just a hobby?
David Kreider
H&R Block
(520) 625-8732
210 W. Continental Road, Suite 134
Continental Shopping Plaza
Green Valley, AZ 85622
