Latest stimulus bill offers more than just checks as Americans get help with health insurance, medical expenses, & more
THE latest stimulus bill offers more than just checks, as Americans get help with health insurance, medical expenses and more.
The March bill includes benefits for millions of Americans, including a third check for up to $1,400 per person, as well as an expanded child tax credit and several further tax breaks for people who are unemployed, low income, or have kids.
The bill, along with other IRS changes this year, also included important updates and tax breaks for medical care and health insurance that could benefit the family, CNET reported.
Those with medical expenses could deduct more money on their 2020 tax return, while those with health care flexible spending accounts were able to contribute more money tax-free this year.
The March stimulus package also included new options for people who need health insurance, and resources to help lower costs for those who are already insured.
Stimulus recipients may be eligible for new short-term health insurance subsidies to buy insurance coverage on HealthCare.gov.
As the bill broadens the subsidies available under the ACA for health insurance, people who are already eligible will be able to receive more.
These new subsidies will be funded for two years through the stimulus bill.
Another benefit for stimulus bill recipients is changes to health flexible spending plans.
Good news for those with health care FSA; the limit for tax-free contributions has increased to $2,750, up $50 from last year.
That means Americans can contribute more money to their accounts, without getting taxed on it.
Another bonus for eligible Americans is more medical expense deductions.
Congress has passed a more generous allowance for what you can deduct as part of the December stimulus bill.
Rather than capping expenses that exceed 10 per cent of recipients’ adjusted gross income, they can now deduct medical expenses that exceed 7.5 per cent of their AGI.
Another perk of the package is free COBRA (Consolidated Omnibus Budget Reconciliation Act) insurance coverage.
Typically, Americans who lose their job can buy insurance coverage through their former employer, under the government COBRA program.
However, they would typically have to foot the bill for that insurance – which is typically very costly.
Under the March stimulus bill, the government will pay the entire COBRA premium from April 1 through September 30, for laid-off employees and family members.
The IRS has sent out over 150million stimulus checks this week – around the same time the US soared past its 150million vaccines goal.
And there are high hopes for a fourth stimulus check after a poll revealed that the "majority of Americans want recurring $2,000 Covid-19 payments."
Although President Joe Biden’s latest $2.3trillion infrastructure plan doesn't include direct payments for Americans, there's been a progressive push for a continued cash injection into people's bank accounts.
The pressure is mounting after Biden signed his $1.9trillion American Rescue Plan into law on March 11, which included a third $1,400 payment.
Many Democratic senators think recurring payments should be included in Biden's latest bill which focuses on building back the USA.
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