Millions of anxious, unemployed Americans are breathing a collective sigh of relief knowing that they will continue to receive – without interruption – supplemental weekly federal unemployment benefits into early September after President Joe Biden signed into law on Thursday the $1.9 trillion stimulus package known as the American Rescue Plan Act of 2021.
Biden’s signature comes just days before the enhanced federal unemployment benefits, established by previous stimulus packages, were set to expire. As part of the new plan, nearly one-third of American households who are currently unemployed or will lose their job this summer will receive federal unemployment benefit payments of $300 per week – on top of standard benefit levels – through September 6, 2021. What’s more, as much as $10,200 of unemployment benefits received in 2020 will be exempt from tax for households whose incomes are less than $150,000. (Note: The IRS is working on 2020 tax form updates to account for the new exemption. If you already filed your 2020 tax return, don't rush to file an amended return – wait until the IRS issues instructions.)
The American Rescue Plan, which was finalized by the House on Wednesday in a firmly partisan 220-211 vote (with one Democrat voting no), is the latest iteration of federal health and economic aid to cushion the blows wrought by the novel coronavirus which, since March 2020, has significantly hobbled the American economy.
The costs of the extended unemployment benefits represent about 13% of the package’s $1.9 trillion budget, which also includes a new round of stimulus checks, an enhanced child tax credit, relief for renters and more. The original version of the bill, approved by the House on February 27, provided federal unemployment benefit payouts of $400 a week through the end of September, but a bevy of last-minute compromises between conservatives and progressives on the Senate floor, in order to secure approval among all Democratic senators, ultimately shrank the payouts by $100 a week and cut the period of the payouts by three weeks.
Democratic lawmakers assert that extending the timeline for providing the bonus federal unemployment benefits into early September will hopefully prevent millions of Americans from losing those benefits abruptly when the Senate is on summer recess. That's what happened last summer, causing millions of unemployed Americans to worry about making up for that supplemental income.
As Cable Companies Move into Mobile, Customers Benefit: The Kiplinger Letter
The Kiplinger Letter The new cable bundle — home internet and mobile — is gaining steam. And the competition means good news for consumers.
By John Miley Published
BNPL Sector Faces Financial and Regulatory Challenges
The Kiplinger Letter BNPL companies are facing the challenges of high costs, tightening financial conditions and regulatory scrutiny.
By Rodrigo Sermeño Published
Four Tips for Renting Out Your Home on Airbnb
real estate Here's what you should know before listing your home on Airbnb.
By Miriam Cross Published
Five Ways to a Cheap Last-Minute Vacation
Travel Procrastinator? No matter. You can pull off a fun and memorable getaway on a moment's notice — without breaking the bank.
By Vaishali Varu Published
How Much Life Insurance Do You Need?
insurance Instead of relying on rules of thumb, you’re better off taking a systematic approach to figuring your life-insurance needs.
By Kimberly Lankford Published
White House Aims to Limit Access to Short-Term Health Plans: The Kiplinger Letter
The Kiplinger Letter The Biden administration's draft rule would restore several Obama-era regulations.
By Matthew Housiaux Published
When Is Amazon Prime Day?
Amazon Prime In 2023 Amazon had two Prime Day events — one in July and another, called Big Deal Days, in October. We expect 2024 to follow the same schedule.
By Bob Niedt Last updated
How to Shop for Life Insurance in 3 Easy Steps
insurance Shopping for life insurance? You may be able to estimate how much you need online, but that's just the start of your search.
By Kaitlin Pitsker Published
5 Ways to Shop for a Low Mortgage Rate
Becoming a Homeowner Rates are high this year, but you can still find an affordable loan.
By Daniel Bortz Published
Retirees, It's Not Too Late to Buy Life Insurance
life insurance Improvements in underwriting have made it easier to qualify for life insurance, which can be a useful estate-planning tool.
By David Rodeck Published