The Biden American Rescue Plan


Published: March 15, 2021

Courtesy of the Stimulus Package Update: What’s in the …

wsj.com

Two Great Things That Happened March 2021

It helps to have an advocate in the White House, and President Joe Biden is that advocate. Amazon for over twenty-years can be arguably called a union buster. And some say they have come close to crossing the line on how they discourage workers from joining a union. Jeff Bezos is the CEO of Amazon and reported by Forbes to be the richest man in the world. So, the question is, why does he not want to unionize Amazon?

Bezos, who is also the owner of the Washington Post newspaper, has been complimented for not interfering in the newspaper business; it was run by those who had the experience and knowledge of the paper business. However, Bezos’s baby was Amazon, where this business was build-out of his garage, where he later become its president and become the wealthiest man in the world. Biden has made a public announcement of being in favor of unionizing Amazon and being a supporter of the unions. They are the middle-class builders of American workers and families.

The other is the Biden American Rescue Plan. There is a comprising difference between the Trump administration and that of the White House’s current resider. The American Rescue Plan has been stated to be nothing like it since President Franklin D. Rosevelt (FDR) brought in the New Deal. Entrepreneurs are receiving the help that they need to survive. All of America is being touched by some means through this rescue plan.

This rescue plan is the same amount of money that the Trump administration spent to upper 1% of America’s wealthiest people or families. This $1.9 trillion was good enough for the wealthy, but get a lot of flack now that this same amount is for the American families. So, here is a novel question for you, which group is working for the American families or the public?

Biden Stimulus Updates

President Biden has cleared how million Americans could receive a $1,400 stimulus check by signing the $1.9 trillion relief bill into law. Americans can expect their check sometime soon, in the next week or so. What qualifies those to get the $1,400? An individual must earn $75,000 or less, $112,500 for the head of household, and $150,000 for couples filing jointly. However, payments are reduced for those who earn above the above threshold.

Nevertheless, another notable change in this program is those dependents of all ages can receive the $1,400. The individuals who will be first to receive their checks will be those who have the direct deposit on file with IRS. Thus, the middle class is finally being represented in this bill over that of the prior administration that was focused on the wealthy.

When to Expect Your Stimulus Check

One day after President Biden signed into law The American Rescue Act, the check is deposited into checking accounts at their bank. Some families will see their money in the next few days others will not, or it will be a longer wait. So why is that?

President Biden stated that 85% of people would receive the $1,400 checks into their accounts starting as soon as Friday, March 12, 2021. Nevertheless, the problems that hindered people in the other two rounds could occur again. For example, individuals who do not have a bank account on file with IRS. These people had to wait several weeks for a paper check or a debit card. Likely, people who have filed their 2019, 2020, and have a record of the taxpayer’s bank account should receive their stimulus payment rather quickly.

The IRS will determine eligibility because one’s 2019, 2020 tax returns and send your returns to where the taxpayer has furnished information to where they wanted their tax returns sent to, and direct deposit is quicker. Without this information, there is nowhere where IRS can send your payment, other than a check, to the last known address indicated on that year’s tax returns. So question, on the bottom of your 1040, when asked where do you want your refund sent, it asks for your bank account number and routing number; what did you put?

Now, if you did not give this information and stated provide you with credit on your next year’s returns, that could be a possibility of why you did not get a stimulus check in your bank account. Thus, you will get a paper check or sent a debit card. One financial institution stated they started receiving funds at 11 am Friday, March 12, 2021, at a record rate. This could be caused by those who signed their 2020 tax returns with updated information. It was also stated that some checks were as high as $9,800.

Your 2019, 2020 Returns

Many taxpayers have not filed their 2020 tax returns because it is not late until April 16, 2021. No worries, IRS will use your 2020 tax returns to determine what you should receive. But what about those who do not earn enough income to file their taxes? IRS did have a website where this population could go online and register and provide this information to IRS, which is their banking information or change of address. However, this site has been closed down, so IRS suggests sending in one’s 2020 returns to receive the money they are owed.

Paper Returns

IRS has stated that they want electronic returns; due to 2019, paper returns have run into a paper jam and are still being processed and subject to delays. Thus, much of this can be attributed to the pandemic and caused IRS to shift to the work-at-home process; when that happened, it turned $6.7 million paper returns in what can be said a holding bend awaiting processing. So, please don’t do a paper filing; do it electronically and get your delayed money into your account.

Dependents

Now here is another caveat that was not in the first two stimulus plans. Taxpayers can now have all dependent children added to their tax returns and receive $1,400 for each child, even if groan and live at home or a newborn. But this must be said on one’s 2020 tax returns. People who do not usually file taxes are encouraged to do so to get this new credit.

Loss of Income

If one is making less money in 2020 than they did in 2019, they must file a 2020 tax return to receive this credit. If the taxpayer does not, IRS will use the 2019 filing for the 2020 stimulus payment, an incorrect figure or amount. For example, you earned $90,000 in 2019 which you were not eligible to receive a stimulus check., But in 2020, your income fell to $50,000; you must file your 2020 return to rectify the 2019 returns so you can now get a check under the new program.

Conclusion

Thus, the $1.9 trillion American Rescue Plan was signed and now in law, making this the second-largest such program in American history. After All, we have somebody in the White House that is looking after the middle class. This administration is promoting the vaccines to get in the arms of the American public by May 31, 2021, so by July 4, 2021, we can have small groups of people in our homes and the beginning to getting back to normal. Thus, new changes in the Bidens program will have some families looking for but not getting this new stimulus check due to changes that have been made in the new program that was not there in 2020. The reduction in income to get a check is at $75.000; now is the latest annual revenue limit.

And finally, as a small business consultant, if you find yourself in need of money for a particular project in your small business or need working capital, click here, and one of our certified loan officers will contact you and get you funded.
Dr. Donald E. Mitchell
President, CEO

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