---
title: "Congress Passed the American Rescue Plan – What You Need to Know"
url: https://burnaze.com/article/e16c90ee-a312-49f2-bcda-8b97dde71162
source: "Franchising.com"
original_url: https://www.franchising.com/news/20210311_congress_passed_the_american_rescue_plan__what_you_need_to_know.html
category: "Finance"
topics: ["Finance & M&A","Regulation & legal"]
published: 2021-03-11T12:00:00.000Z
modified: 2026-11-01T02:29:42.118Z
image: https://images.unsplash.com/photo-1551288049-bebda4e38f71?w=1600&q=80&auto=format&fit=crop
---

# Congress Passed the American Rescue Plan – What You Need to Know

**TL;DR:** Congress has passed the American Rescue Plan Act of 2021, which will bring additional relief to millions of Americans impacted by the pandemic. The plan includes a third round of stimulus payments with new benefit amounts and eligibility criteria.

*originally published in Franchising.com on 2021-03-11. [Read the original](https://www.franchising.com/news/20210311_congress_passed_the_american_rescue_plan__what_you_need_to_know.html).*

## Story

“With each round of stimulus payments, there are details that change, and this third round of stimulus payments is no different,” said Julius Lai, H&R Block’s chief product and experience officer. “H&R Block is here to help with online calculators and resources, so that everyone knows how the American Rescue Plan will impact them.”

Key differences with the third stimulus include:

**New third stimulus benefit amounts.** With the third stimulus, those who are eligible will receive $1,400 per individual or $2,800 per couple.

**More dependents will receive stimulus money.** All dependents on a person’s tax return will receive a $1,400 benefit, this includes children 17 and older, and adult dependents, such as college students.

**The income thresholds have changed, and stimulus payments phase out to zero sooner.** Third stimulus payments of $1,400 will be sent to eligible individuals making up to $75,000 per year (or up to $112,500 for head of household) and $2,800 for couples and surviving spouses making up to $150,000 per year. Stimulus payments are reduced as income exceeds these threshold amounts, but unlike the first and second payments, the third stimulus payments will phase out entirely at $80,000 for single filers, $120,000 for head of household, and $160,000 for married couples and surviving spouses.

In addition to specific changes to the third stimulus payment, the bill passed by Congress also includes other important tax provisions.

**Taxing unemployment income will change.** If you received unemployment benefits in 2020, the first $10,200 will not be taxed as income. This applies for households with adjusted gross incomes of less than $150,000. As the IRS shares guidance on the benefit, we’ll help people understand what this means for individuals who have already filed and how they can claim the benefit.

H&R Block online tools that have been updated with the latest information on the American Rescue Plan Act of 2021, include:

- A stimulus calculator to determine how much people will receive in a third stimulus check,

- The company’s Coronavirus Resource Hub, which provides answers to questions about who will receive a third stimulus check, how much it may be, and more, and

- The Block Advisors' guide to 2020 small business taxes and stimulus relief, with information about relief and benefits for small business owners.

In addition to these resources, H&R Block tax pros are ready to help answer third stimulus questions people may have, as well as how the pandemic may impact their 2020 tax filing.

## Entities

- Franchising.com (publication)
- General (sector)
- pandemic response (topic)
- H&R Block (company)
- Congress (regulator)
- tax relief (topic)
- stimulus payments (topic)
- American Rescue Plan Act of 2021 (policy)

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Originally reported by Franchising.com (https://www.franchising.com/news/20210311_congress_passed_the_american_rescue_plan__what_you_need_to_know.html). Summarized by Burnaze (https://burnaze.com/article/e16c90ee-a312-49f2-bcda-8b97dde71162).