WE'VE
WE'VE BEEN TELLING YOU ABOUT HOW CONGRESS HAS PASSED THIS ONE POINT NINE TRILLION DOLLAR
AMERICAN RESCUE PLAN. AND WHILE
THE BILL IS WAITING FOR THE
PRESIDENT VICE PRESIDENT
BIDEN'S SIGNATURE, WE WANT TO
BREAK DOWN EVERYTHING IT
ENTAILS HERE CPA AND CEO
OF ACCOUNTING ERIC PEIRE JOINS
US THIS MORNING TO HELP US
BREAK IT DOWN. GOOD MORNING TO
ERIC WARNER. HOW ARE YOU DOING?
GOOD. GREAT TO SEE YOU AGAIN
HERE. SO LET'S LET'S START WITH
THE EXPANDED CHILD TAX CREDIT
BECAUSE THIS ONE IMPACTS A LOT
OF FAMILIES. WE'RE HEARING
ABOUT DIRECT MONTHLY PAYMENTS
TO PARENTS STARTING THIS
SUMMER. TELL US A LITTLE BIT
ABOUT THAT AND HOW THIS IS
GOING TO HELP FAMILIES. YES. SO
CURRENTLY THE CHILD TAX CREDIT
IS TWO THOUSAND DOLLARS PER
CHILD BUT WITH THE NEW STIMULUS
PACKAGE, IF YOUR CHILD IS AGED
SIX UNDER THAT CREDIT IS NOW
THREE SIX HUNDRED DOLLARS AND
FOUR CHILDREN AGED SIX TO 17,
THEY HAVE RAISED TWO THOUSAND
THREE THOUSAND. YOU MENTIONED
THE MONTHLY PAYMENTS THIS
SUMMER IF YOU QUALIFY WHICH IS
YOUR INCOME BEING SEVENTY FIVE
THOUSAND AND UNDER AJAI SINGLE
OR ONE HUNDRED FIFTY THOUSAND
MARRIED THAT SIX OTHER KID WILL
GET AN EXTRA THREE HUNDRED
DOLLARS A MONTH STARTING FROM
JULY TO DECEMBER AND THEN FOR
THE KIDS SIX THROUGH 17 TO 50
DOLLARS A MONTH OF JULY TO
DECEMBER. NOW IF YOU DON'T
QUALIFY UNLIKE THE STIMULUS
PAYMENTS IN THE PAST, THE IRS
WILL WANT THEIR MONEY BACK WILL
BE TAXED AT TWENTY TWENTY ONCE
IF YOU KNOW YOU DO NOT QUALIFY.
THE IRS WILL RELEASE THE PAUL
FOR TO OPT OUT OF THOSE
PAYMENTS NOW WITH THOSE DIRECT
MONTHLY PAYMENTS AND WHEN THOSE
END I THINK YOU SAID TO THE AT
THE END OF THIS YEAR THEN IT
BECOMES AN ANNUAL TAX CREDIT
THAT'S INCREASED FROM THAT FORM
OR TWO THOUSAND HOW DOES THAT
WORK COME TAX TIME? OK, SO
COMTREX IF YOU QUALIFY AND YOUR
INCOME THRESHOLDS ARE JUST
DISCUSSED WHICH IS AGAIN SINGLE
SAY FIVE THOUSAND DOLLARS AND
UNDER AGI MARRIED ONE HUNDRED
FIFTY THOUSAND UNDER LOWER PART
OF YOUR TAX RETURN AS LONG AS
YOU ARE UNDER THOSE THRESHOLDS
YOU DON'T HAVE TO REPAY.
HOWEVER IF YOU GO ABOVE THAT
THRESHOLD YOU WILL REPORT TAX
PAYMENTS INTO THE IRS WILL TAKE
THAT MONEY BACK UNLIKE THE
STIMULUS PAYMENTS THAT YOU
RECEIVED, IT'S WEINZWEIG WHERE
IF YOU RECEIVE YOU DO NOT HAVE
TO PAY IT BACK. THAT'S THE
DIFFERENCE. BUT NEXT YEAR I
GUESS WHAT I'M TRYING TO ASK IS
DOES THAT DOES THE CHILD TAX
CREDIT INCREASE PERMANENTLY FOR
THREE THOUSAND AND THEN IS THAT
JUST DEDUCTED FROM YOUR TAXABLE
INCOME OR HOW DOES IT WHAT
HAPPENS NEXT YEAR WITH THESE
THIS INCREASE IN CHILD TAX
CREDIT? OK, SO THE CHILD TAX
CREDIT RIGHT NOW THE INCREASE
FOR TWENTY TWENTY ONE IS A IS
ONLY FOR TWO MONTHS FROM NOW IT
COULD BE PERMANENT LATER. OK
THAT WILL HELP REDUCE YOUR TAX
LIABILITY. INTERESTING. OK
LET'S TALK ABOUT THESE FOURTEEN
HUNDRED DOLLAR STIMULUS
PAYMENTS THAT ARE GOING TO GO
TO MOST AMERICANS DIRECT
PAYMENT IN TAX. DOES THAT
DIRECT OUR TAX BILL AT ALL
WHICH WE COME TAX TIME ON
THOSE? OK SO FROM WHAT WE KNOW
NOW THERE ARE SOME SOME
WRINKLES TO IT ONE IN THE PAST
IF YOU WERE AN ADULT DEPENDENT
YOU COULD NOT RECEIVE PAYMENT
BUT FOR THE FIRST TIME IN THIS
PACKAGE IF YOU ARE DEPENDENT
MEANING THAT IF SOMEONE CAN
CLAIM YOU YOU CAN STILL YOU CAN
ACTUALLY RECEIVE THE STIMULUS
THE STIMULUS PAYMENTS WILL BE
SENT OUT STARTING IN THE NEXT
FEW WEEKS ONCE MR. BIDEN SIGNS
THE PRESIDENT BY EXCUSE ME
SIGNS A BILL AND IT WOULD BE
DEPENDENT ON YOUR TWENTY 19
RETURN OR TWO POINT TWENTY IF
NOT FAILURE TO TRY TO RETURN
THEY MAY NOT BE PROCESSED FAST
ENOUGH BUT THERE WILL BE A
SECOND ROUND OF PAYMENTS TO
EITHER 90 DAYS AFTER THE TAX
FILING DAY OR SEPTEMBER ONE
WHICHEVER IS EARLIER. OK SO
THAT THAT FOURTEEN HUNDRED
DOLLARS IS FOR KIDS TO
BASICALLY I MEAN I THINK IN THE
PAST THEY WERE DOING A COUPLE
OF HUNDRED DOLLARS PER KID
DIRECT PAYMENTS BUT NOW IF
YOU'VE GOT KIDS DEPENDENTS THE
ADULT DEPENDENTS. RIGHT. OK
INTERESTING THE IMPACT ON
UNEMPLOYMENT BENEFITS HERE IS
THERE GOING TO BE ANY CHANGES
COME TAX TIME WHEN WHEN WE'RE
TALKING ABOUT THOSE ON
UNEMPLOYMENT? YES, YES. SO
RIGHT NOW WITH UNEMPLOYMENT THE
BILL SAYS THAT IF YOU RECEIVE
TEN THOUSAND TWO HUNDRED
DOLLARS UNEMPLOYMENT LAST YEAR
AND YOU MADE ONE HUNDRED FIFTY
THOUSAND DOLLARS OR LESS THAT
FIRST 10000 IS TAX FREE. SO IF
YOU ALREADY FILED YOUR TAX
RETURN YOU MAY HAVE SOME ON
YOUR TAX RETURN TO GET UP TO
FIFTEEN HUNDRED DOLLARS
OF FEDERAL TAXES BACK AND THEN
ALSO UNEMPLOYMENT BENEFITS WERE
SUPPOSED TO EXPIRE ON MARCH
14TH WHICH IS SUNDAY. BUT THIS
NEW BILL THEY'LL BE EXTENDED
THROUGH SEPTEMBER SIX. AND
ERIC, WE KNOW THAT THE THERE
ARE SOME THINGS WE'RE LEFT OUT
REAL QUICK WE GOT TO WRAP UP
BUT THERE WERE A FEW THINGS
THAT WERE LEFT OUT HERE RIGHT?
YES. SO MINIMUM WAGE DID NOT
INCREASE IN THIS BILL AND ALSO
THERE'S NOT ANY STUDENT LOAN
DEBT FORGIVEN YET EVEN THOUGH
THE BILL DOES MENTION THAT IN
THE FUTURE STUDENT COULD BE
FORGIVEN AND IT WILL NOT BE
TAXABLE BUT THEY DID NOT
ACTUALLY PUT IN ANY MECHANISMS
FOR STUDENT DEBT TO BE FORGIVEN
RIGHT NOW. BUT IT LOOKS LIKE
SOMETHING WILL BE DONE IN THE
FUTURE. ALL RIGHT, ERIC, THANKS
SO MUCH FOR YOUR TIME. SURE
APPRECIATE IT. AND A LOT
OF PEOPLE LOOKING OUT IN