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Important Stimulus Check and Tax Return Information

Important Stimulus Check and Tax Return Information

March 22, 2021

Many of you are aware that President Biden signed the $1.9 Trillion “American Rescue Plan Act of 2021” on March 11, 2021. This may mean that you qualify for a third stimulus check. To qualify, your adjusted gross income needs to be below $75,000 if you are single, or $150,000 if you are married. The IRS will either look at your 2019 or 2020 tax return to find your latest adjusted gross income. If you believe you have higher income in 2020, it may be a good idea to delay filing your return, so that the IRS will use your 2019 income information. If you qualify, you will receive $1,400 per household member. For example, a family of 4 would receive $5,600 if they qualify.

We mentioned you could delay filing your 2020 tax return. The IRS has announced they are extending the filing season through May 17, 2021. This is a one-month extension for both filing and payment. One reason for this delay is that the recent stimulus package included provisions that could impact 2020 taxes. Since the IRS is in the middle of tax season, they delayed the deadline so they can better understand the latest tax impact.

We are researching the impact of this new stimulus bill and keeping an eye on inflation. We have seen some early signs of inflation in areas like oil/gas prices, housing prices, and other areas of the economy. Historically, we have seen several areas of the stock market do well during an inflationary period. This is why we are staying the course and continue to have a positive outlook for 2021!

Inflation could continue to rise, but it also means demand is increasing. As the US workforce continues to go back to work, demand is going to pick back up. This will lead to a stronger economy and slowly getting back to normal!

We look forward to possibly seeing you all face to face in 2021!

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