American Rescue Plan Act Of 2021 - CPA Clinics
The following is a brief summary of key tax provisions included in the American Rescue Plan Act of 2021, signed into law March 11, 2021, affecting 2021.
Eligible individuals may qualify for a 2021 rebate amount of up to $1,400 per taxpayer ($2,800 MFJ), plus $1,400 per dependent. This is treated as a Recovery Rebate Credit on your 2021 tax return. Any stimulus payment received now reduces the Recovery Rebate (but not below zero) that may be claimed on your 2021 tax return. This stimulus payment for dependents is not limited to dependents who are under age 17. This stimulus payment may not be paid, per individual, more than once. The payment starts to phase out when AGI exceeds $75,000 (Single, MFS), $150,000 (MFJ, QW), and $112,500 (HOH) and is fully phased out at $80,000 (Single, MFS), $160,000 (MFJ, QW), and $120,000 (HOH).
