In the past year, there have been several stimulus bills passed with varying benefits. The benefits can really begin to add up and for fun I wanted to walk through a hypothetical example. Meet Joe and his wife Sarah. Joe reports $100,000 net of self-employment income on Schedule C (no employees) and Sarah stays at home with their four children. Below are several of the payments Joe and Sarah could have received over the past year or that could be upcoming:
$4,400 - First stimulus check
$1,000 - Economic Injury Disaster Loan advance (business related)
$20,833 - Paycheck Protection Program round 1 (business related)
$3,600 - Second stimulus check
$20,833 - Paycheck Protection Program round 2 (business related)
$8,400 - Third stimulus check
$6,400 - Child tax credit increase above the normal $2,000 child tax credit
$65,466 - Total benefits listed above That is an outstanding number and even more so since the above benefits are tax-free. Depending on a variety of factors, our hypothetical Joe probably only makes about $75K after taxes for a year’s worth of work. In other words, the benefits above are almost the equivalent of a year's worth of work for Joe. Also, the above list doesn't even include all the benefits one could receive. There are many ways this number could be even higher. Many Americans do not have enough money saved for a basic emergency. It has been a hard year for many and not all people will qualify for the benefits listed above. The majority of Americans received at least some cash infusion though. This cash infusion could be the opportunity to start using money with intention.
Interesting Article(s) or Video(s)
Kiplinger - Tax Day 2021: When's the Last Day to File Taxes?
The IRS extended the deadline to file Federal income tax returns to May 17th. The deadline could be later if you are a storm victim in Texas, Oklahoma, or Lousiana. Not all states will follow this extension. I would be happy to look into your state specifically. Just let me know!
Thank you for reading!