Stimulus Checks Are In The Mail, Again; $500 Billion Biden Tax Cut

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Stimulus checks started going out on Wednesday as part of Biden’s $1.9 trillion American Rescue Plan. It’ll be a long process , since 158.5 million households are expected to qualify for direct payments. If you haven’t received yours yet, you can check the status of your payment with the IRS’ Get My Payment tool.

Although trillions of dollars in federal stimulus spending helped prevent “some of the very worst economic outcomes,” there are concerns on Wall Street about increased debt levels and inflation. The stimulus package will also have implications beyond money in your pockets, from tax credits to student loans.

New Stimulus Provides Free Insurance (Temporarily) And Covers Adult Dependents

One of the most controversial provisions in the stimulus package is the 100% COBRA subsidy. Starting April 1, the government will cover the healthcare premiums of laid off workers. But they would have to pay co-insurance and co-pays, so this option still might not be affordable for many.

Another new legislation President Joe Biden authorizedis stimulus payments to adult dependents, who were left out of the two previous rounds. Eligible taxpayers and their dependents, even those over the age of 17, will be eligible to receive the $1,400 stimulus checks.

More Time, Less Taxes

If these new provisions are confusing, at least you’ll have more time to mull them over as you file your 2020 taxes. The IRS pushed the April 15 tax deadline to May 17 “to give Americans some needed flexibility in a time of unprecedented crisis.” The new deadline does not apply to trust income tax returns, gig workers and many retirees.

Not only did taxes get delayed, but also reduced. Congress passed the tax cuts in President Biden’s American Rescue Plan, which would slice taxes by almost $500 billion in fiscal year 2021—one of the largest one-year tax cuts in U.S. history.

One Step Forward For Extensive Student Loan Forgiveness

There is still much uncertainty around student loan forgiveness, but the latest stimulus package did include a provision for federal student loan borrowers expecting forgiveness from income-driven repayment plans (IDR). Now, student loan forgiveness is tax-free for borrowers who receive forgiveness from January 1, 2021 through December. 31, 2025—meaning you may be eligible if you started repaying your IDR plan between January 1, 1996 and December 31, 2000. Advocates of student loan forgiveness see this as a first step toward widespread forgiveness or additional tax changes. However, in the history of IDRs, only 32 people have ever received student loan cancellation.

Inflation And Commodities And Sports Memorabilia, Oh My

A recent Bank of America survey indicated that 37% of the fund managers surveyed named inflation as the main “tail risk” for investors. They are watching closely for any signs of policy tightening to tamp down their fears, but experts are not expecting the central bank to raise rates any time soon. These concerns have led to the biggest drop in exposure to risky tech stocks in 15 years, while allocation to commodities rose to an all-time high. If neither tech or commodities are appealing to you, you can consider investing in sports cards and memorabilia through a new fintech that lets you trade sports cards like stocks.

Novel graphic: 10-Year Treasury…