Washington, D.C. — Congresswoman Jahana Hayes (CT-05) released a statement on how the American Rescue Plan Act will help workers and families recover from the impacts of the pandemic. This bill provides a new round of Economic Impact Payments (EIP) to Americans, expands unemployment impact benefits through September 6, 2021, and supports families by strengthening and expanding the federal Child Tax Credit.
“The American Rescue Plan delivered an additional $1,400 for working and middle-class Americans - including 2 million adults and 739,000 children in Connecticut,” said Congresswoman Hayes.
“Extended unemployment insurance and economic stimulus comes at a crucial time for Americans out of work due to COVID-19. Without this bill, tens of thousands of Connecticut residents would have been left without any additional unemployment relief for the foreseeable future,” continued Congresswoman Hayes. “We did not let this relief lapse. The American Rescue Plan puts an extra $300 a week in the pockets of those who lost jobs during the pandemic. That is $300 each week to help pay rent. $300 to feed your kids. $300 to help pay for health care during a global pandemic. The expanded Earned Income Tax Credit will provide over 150,000 childless workers up to $1,000. These are tremendous financial supports for Connecticut residents who are figuring out how to stabilize their families during the most consequential economic disaster in generations.”
Under the American Rescue Plan:
A New Round of Economic Impact Payments is in Effect
- Authorizes a new round of Economic Impact Payments (EIP) to support Americans and spur economic recovery.
- Payments include:
- $1,400 per eligible taxpayer (phasing out between $75,000 and $80,000 for Single/Married Filing Separately taxpayers).
- $2,800 per eligible married couples (phasing out between $150,000 and $160,000 for Married Filing Jointly taxpayers).
- $1,400 per qualifying dependent with a SSN – both a child and non-child dependent regardless of age (phasing out between $112,500 and $120,000 for Head of Household taxpayers).
- To check the status of your payment, use the “Get My Payment” tool at https://www.irs.gov/coronavirus/get-my-payment.
- According to the White House, more than 2 million adults and 739,000 children in Connecticut are eligible to receive payments through the American Rescue Plan Act that Rep. Hayes helped pass into law. That means 80% of all adults and 77% of state children would receive payments.
Extended Federal Unemployment Insurance
- Extends Unemployment Insurance (UI) benefits with a $300 weekly boost through September 6, 2021.
- CARES Act benefits to provide pandemic relief for unemployed Americans were expanded, including:
- Federal Pandemic Unemployment Compensation (FPUC)
- Pandemic Unemployment Assistance (PUA)
- Pandemic Emergency Unemployment Compensation (PEUC)
- Workers receiving UI in 2021 automatically qualify for the highest possible Premium Tax Credit to buy health insurance through the marketplace.
Additional Support for Families
- Increases the Child Tax Credit for families to $3,000 per eligible child for the 2021 tax year.
- Dependents are eligible if between ages 7 and 17
- Increasing the credit to $3,600 per child for children under 6
- Taxpayers can receive the credit even if their tax bill is zero
- Eligible persons include:
- Single filers earning $75,000 a year or less receive full credit. The credit amount decreases based on income (phasing out at $200,000/year),
- Heads of household earning $112,500 and under,
- Married couples earning $150,000 per year or less receive full credit. The credit amount decreases based on income (phasing out at $400,000/year).
- Families will receive half the credit as an advance on 2021 taxes and can claim the other half on their 2021 tax return. These advance payments begin July 1, 2021.
- Expands the Earned Income Tax Credit (EITC)
- The plan increases the maximum credit for Childless EITC from $532 to $1,502—the most significant EITC expansion since 2009.
- The amount an individual can earn from investments (not counted toward income) increased from $3,650 to $10,000.
- The plan also reduces the minimum age to claim the Childless EITC from 25 to 19 (except full-time students) and eliminates the upper age limit.
- Strengthens the Child and Dependent Tax Credit (CDTC), allowing families to claim up to half of their childcare expenses.
- The CDTC is fully refundable for the 2021 tax year, meaning that taxpayers can collect the credit even if their tax bill is zero.
- The plan increases dependent care costs from $3,000 to $8,000 for a single dependent and from $6,000 to $16,000 for two or more dependents.
- These changes are in effect only for the 2021 calendar year.
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Rep. Jahana Hayes has been a public school teacher in Connecticut for more than 15 years and was recognized in 2016 as the National Teacher of the Year.
Rep. Hayes sits on the Committees on Education & Labor and Agriculture and proudly represents Connecticut’s 5th District.