Stimulus Part 2: What You Need to Know

We wish you and your family a wonderful holiday season.

We wanted to send you some information on Stimulus Part 2, now that Congress passed. Instead of reading the 5000+ page bill, we would like to summarize the items that might pertain directly to you to act appropriately.

Stimulus Money

• How Much Could I Receive?
• Single – $600
• If you make under $75k AGI on your latest tax return (line 8b)
• If you make between $75k and $99k, you will receive a smaller check.
• If you make more than $99k, you will not receive a check.
• Married – $1,200
• If you make under $150k AGI on your latest tax return (line 8b)
• If you make between $150k and $198k, you will receive a smaller check.
• If you make more than $198k, you will not receive a check.
• Head of Household – $600
• If you make under $112,500 AGI on your latest tax return (line 8b)
• If you make between $112,500 and $136,500, you will receive a smaller check.
• If you make more than $136,500, you will not receive a check.
• Plus an additional $600 per child under age 17
• Stimulus Check Calculator
• Your latest tax return will be used to determine your qualifications.
• When?
• Treasury Secretary, Steven Mnuchin, said he expected most payments to go out before the end of the year.
• How will I receive it?
• It will be sent the same way as the first round of stimulus checks were.
• The checks will be sent via direct deposit if you’ve already provided the IRS with your bank account information. If you received a refund this year deposited directly into your account, you’re all set.
• If the IRS doesn’t have your direct deposit info, you will get a check in the mail.

Enhanced Unemployment Benefits

• Eligible workers would get an extra $300 per week on top of their state benefit until March 14th.

Required Minimum Distributions (RMDs)

• There was no news about RMDs and if they will be waived for 2021 like they were for 2020.
• If you do not need your RMD, we recommend delaying it until later in the year if any future updates are waiving RMDs.
• Obviously, this is a very fluid situation, so we will keep you posted on any updates.

Student Loan Payments

• Despite there being relief in the proposed bill, surprisingly, there was nothing about student loan relief in the final approved bill. This means your Direct loans are scheduled to start their payments back up in February.
• Our guess is President Biden will issue an executive order to continue this payment and interest freeze for longer, but no one knows for sure, so expect your payments to start soon.
• We still believe switching to Direct Loans from FFEL is a benefit in most situations and sets your accounts up for potential forgiveness down the road that Congress may offer.
• If you have any questions, please contact Steve.

Charity Contributions

• Beginning with 2021 tax returns, taxpayers will be able to claim up to $300 (Single) or $600 (Married) in cash contributions to charity as a deduction without itemizing.

Unused Flexible Spending Account Money

• Now, if your employer allows it, you could carry over unused health care or dependent care money and use it in 2021—ditto for unused 2021 money that you wish to carry over into 2022.

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We always appreciate hearing from you, understanding your concerns and working together.

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SCHEDULE A MEETING

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Resources

• https://www.nytimes.com/article/stimulus-deal-update.html
• https://nymag.com/intelligencer/2020/12/what-is-in-the-usd900-billion-covid-second-stimulus-package.html
• https://nymag.com/intelligencer/2020/12/what-is-in-the-usd900-billion-covid-second-stimulus-package.html

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