Who stands to benefit the most from Biden’s COVID relief bill?

Coronavirus

President Joe Biden speaks about the COVID-19 relief package in the State Dining Room of the White House, Monday, March 15, 2021, in Washington. (AP Photo/Patrick Semansky)

(NEXSTAR) – On Thursday, President Joe Biden signed COVID-19 relief legislation that will provide direct aid to families amid the pandemic.

But who stands to benefit the most from the $1.9-trillion bill?

According to a new analysis by the Tax Policy Center, the American Rescue Plan will provide an average of $6,600 to households with children, with low-income families seeing the most in aid.

The lowest-income households — those making $25,000 annually or less — will see an average tax cut of $2,960, or 21.1 percent of after-tax income, according to the analysis.

Middle-income households (those making between $51,000 and $91,000) will garner a tax cut of $3,720, or six percent of after-tax income.

The nation’s top earners will see the most negligible tax cuts. After-tax incomes for those in the top .1 percent (those making about $3.5 million a year or more) would decline by about $970.

The boost to the child tax credit under Biden’s bill will give parents a total of $3,600 for every child under age 6, and $3,000 for each child under age 18 in 2021.

Previously, the credit was up to $2,000 for each child under 17.

Earlier estimates suggest that the bill could cut child poverty in the U.S. by half this year.

Who qualifies?

  • The added payments this year would begin phasing out for couples making over $150,000, and couples making over $170,000 would see no added benefit, according to the New York Times
  • As in previous years, single filers making under $200,000 and married filers making less than $400,000 would still be eligible for the $2,000 payments. 
  • The frequency of the checks containing the first half of the payment is not yet solidified. The Treasury Department will determine how frequently checks can realistically be distributed. 
  • The remaining portion of the credit would still be claimed when taxes are filed.
  • The credit would be refundable, meaning you could still get the credit even if you don’t end up owing taxes. 
  • Some Democrats have called for making the payments permanent.

Get breaking news, weather, and sports delivered to your smartphone with the WFXR News app available on Apple and Android.

Copyright 2021 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

News tips

Do you have a news tip or breaking news to share with WFXR?  Submit your tip here.

Latest News

More News

News Tip Form

Senior Send Off