SALT LAKE CITY – There is no way to encapsulate a $ 1.9 trillion dollar account in a short story, but the video above shows a series of the most important aspects of the American Rescue Plan for Utahns.
WATCH: Utah economists predict that the stimulus bill will provide ‘big leap’ for the state
Below are the most important things that Utah residents should keep in mind:
DIRECT PAYMENTS: Direct cash in the form of $ 1,400 stimulus checks and child tax credits must come directly to your bank account if you file taxes by direct deposit. If you receive checks in the mail, they should reach you that way. Both will come from the IRS.
CHILD’S TAX CREDIT: These payments are expected to begin in July, according to the bill. Most experts expect payments to be monthly, although this has not yet been finalized. You will also receive credit from January to June, but it will probably be in the form of a tax credit when you file a return next year.
UNEMPLOYMENT: If you have already declared taxes for 2020 and paid taxes on unemployment insurance, talk to an accountant about changing your return. This $ 10,200 exemption should really help and is available to you. If you are currently unemployed, the continuation of the extra $ 300 should continue automatically, as long as you continue to report your situation.
CHILDREN’S TAX CREDIT AND INCOME TAX CREDIT RECEIVED: These are credits, that is, if you are eligible, you will receive the full amount, but this will also come with next year’s tax return. These increased credits are only in effect for 2021, although Democrats have made it clear that they want to make them permanent after that. It is difficult to know if they would achieve this, considering that they may need sixty votes in the Senate, but it is one of the most bipartisan proposals on the bill because of its resemblance to a proposal by Utah Senator Mitt Romney, and with the support of several think tanks conservatives who see it as a pro-family policy.
PAYMENT CHECK PROTECTION LOAN: Howard Headlee with the Utah Bankers Association emphasized that loan applications will now be judged on the amount of lost revenue due to Covid, and not on the amount of lost revenue. This reporter (Max Roth here) is not an expert, but my understanding is that several very small business owners and individual owners report very little revenue on their “Table C” tax form. Before, loans were based on this “Appendix C” income. It is not now and companies that have explored the PPP and have not applied should look again. If you’ve already signed up, Headlee says you can’t change your subscription right now, although he expects that to change that.
WATCH: Is this the last stimulus check?
The eligibility for all that money is based on varying income limits. Checks for $ 1,400 are eliminated quickly after an individual earns $ 75,000, a householder earns $ 112,000 and a couple earns $ 150,000. Tax credits for children start to decrease at the same points, but the elimination is much more gradual.