Tax Implications of the American Rescue Plan Act (ARPA) to Individuals and Families
The Biden Relief Plan will lift millions of Americans out of poverty and provide relief to unemployed workers
President Biden signed into law his American Rescue Plan Act (ARPA) of 2021 on Thursday, March 11, 2021. With a price tag of $1.9 trillion, this coronavirus relief plan will send direct payments to millions of Americans, strengthen a wide range of social programs, and step up investment in vaccine distribution. Much of the plan’s economic relief is administered through the tax code in direct payments, expanded child tax credit, and earned income tax credit.
An earlier story published on Medium when the Senate passed the bill can be found at the end.
Several items in this relief package have tax implications that could put more money into the hands of low and middle-income families. As a tax professional, I prepare tax returns for many individuals and families, almost all of them eligible for the first two stimulus payments. Those at the lower end of the income spectrum, especially those who have children, rely on their income tax refunds for paying off debt, medical bills and finding money to put food on the table. Many of them work at more than one retail store or a fast…
