5 Ways the American Rescue Plan Puts Money in Your Pocket

When President Biden was inaugurated, he pledged to make COVID-19 relief a top priority. You probably heard that the latest stimulus, the American Rescue Plan (ARP) Act was signed into law on March 11, 2021. It’s the third round of assistance designed to boost the U.S. economy as it continues to struggle from the pandemic.

The American Rescue Plan Act was signed into law on March 11, 2021.

ARP is a massive $1.9 trillion package that gives funding to state and local governments, schools, infrastructure projects, COVID testing and vaccination programs, and more. According to the Tax Foundation, about $850 billion will go to individuals and about $65 billion to businesses. Most of the provisions are temporary expansions to manage the pandemic. However, some benefits may likely become permanent. 

The relief for individuals comes in the form of stimulus checks and various tax credits, building on benefits from previous laws, such as the CARES Act. Today, we'll review five ways the recent stimulus helps individuals. We’ll cover who qualifies for payments and other significant benefits.

How the American Rescue Plan of 2021 Helps Individuals

Here’s the detail on several ways ARP may put money in your pocket.

1. Receiving a stimulus payment

For this round of Economic Impact Payments, which are also called recovery rebates or stimulus payments, the qualifying income levels are lower. That means some people who received previous payments won't be eligible for the third payment. However, those who qualify will get larger payments (the previous rounds were $1,200 and $600 per person). 

The third stimulus payment will be $1,400 per eligible person if you have adjusted gross income of up to $75,000 for single filers, $112,500 for head-of-household, or $150,000 for married couples filing a joint tax return.

The third stimulus payment will be $1,400 per eligible person if you have adjusted gross income of up to $75,000 for single filers, $112,500 for head-of-household, or $150,000 for married couples filing a joint tax return. 

Those earning up to $80,000 for a single, $120,000 for head-of-household, and $160,000 for joint...

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