Message from Rep. AOC

Dear Community Members of NY-14,

Last week, the House voted to pass the latest stimulus package – the American Rescue Plan. The bill provides another round of stimulus checks, extends unemployment insurance, supports vaccine efforts, and increases the Child Tax Credit. This package includes real meaningful relief. Many experts believe it’ll cut child poverty in half. 

We know many of our constituents are disappointed that this package does not include a raise in the minimum wage and that fewer individuals are eligible for the stimulus check. Regrettably, the Senate parliamentarian ruled the minimum wage could not be included in the bill and a few conservative Democrats in the Senate lowered the income threshold to qualify for a stimulus bill. Please know, I will continue to fight to pass an increase in the minimum wage and for additional relief to meet the scale of the crisis.   

Still, there is much to celebrate in this bill. Working with our colleagues, we pushed to get important relief included – including expanded funeral assistance, stimulus checks for adult dependents,  a tax exemption for your first $10,200 of unemployment benefits, and desperately needed state and local funding for things like the MTA.  We’ve included an FAQ at the bottom of the newsletter detailing what kind of relief you can expect to receive and when. 

In other COVID news, the City is hiring people from the Corona, Jackson Heights, Parkchester and East Elmhurst neighborhoods to help with vaccination efforts.  No healthcare experience is required for many of these positions, which include roles in site management, operations, and client services, in addition to clinical roles. You can apply here.  

As always, we also encourage all members of our community to get vaccinated – and to get whichever vaccine is available to you first. Last week, the City opened up vaccinations to everyone 60 years of age and older as well as several new classifications of workers. You can see if you’re eligible here.  The City is also now starting to send healthcare workers to eligible homebound New Yorkers at their homes. If you are eligible for the vaccine but are homebound, you can put your name on a list to receive a visit here.

Please do not hesitate to contact our office if you have any questions regarding the relief package or if we can be of any other assistance.  You can reach our office by sending a message HERE or by calling 718-662-5970. We are also regularly sharing resources and information at our @RepAOC Twitter, Instagram and Facebook accounts.  

In service,

Representative Alexandria Ocasio-Cortez

FAQ on the Latest Stimulus Package

On Wednesday,  March 10, the House voted to pass the latest stimulus package and, the following day, President Biden signed it into law. We’ve included some frequently asked questions and answers about the American Rescue Plan below.  

What’s happening with the child tax credit? 

This is one of the most exciting and innovative parts of the bill. People expect it could help cut child poverty in half. Here’s how it works: 

If you earns less than $75,000 (or your household earns less than $150,000) you’ll receive $3,600 for each child under age 6 and $3,000 tax for each child aged 7-17.  If your income exceeds that threshold, the credit will be reduced by $50 for every additional $1,000 of income. Individuals earning $95,000 or joint filers earning $170,000 are not eligible for the tax credit. 

The tax credit applies to your 2021 tax year, but the IRS will advance part of the credit in the forms of checks that will be delivered or direct deposited as early as July. These checks will continue at semi-regular intervals through December. The remaining amount will be credited against your taxes when you file next year. 

The child tax credit is available to those living in U.S. territories. It is also entirely fully refundable and doesn’t require an individual to be employed to qualify. 

Am I eligible for the child tax credit if I’m having a baby this year? 

Yes. The bill includes a provision that allows any person who gives birth in 2021 to receive the third $1,400 stimulus check for that child after filing their tax return in 2022.

How much are the stimulus checks and who will get them? When will they arrive?

You can use this calculator to get a good sense of how much you will receive, here.

Under the bill, single filers with incomes up to $75,000, head of household filers with incomes up to $112,500, and joint filers with incomes up to $150,000 will receive payments of $1,400.  Those making more than that income threshold will receive lesser amounts, and those single filers making more than $80,000 (head of household filers making $120,000, and joint filers making $160,000) will receive no stimulus payment at all. 

If you have direct deposit set up with the IRS, you may have already received the check – if not, you should very shortly. If you receive your tax refunds via check or prepaid debit card, those should arrive in the mail over the next few weeks. 

Are adult dependents eligible for stimulus checks? 

Unlike previous payments, adult dependents (those who are 19-24, retirees, or adults with disabilities who rely on another person for more than half of their expenses) are now eligible for payments, as long as the filer who claims them as a dependent meets the eligibility requirements listed above.  

The check will be sent directly to the filer who claims the dependent, not the dependent. 

Previously, only dependents under 17 were eligible.

Are mixed status or undocumented families eligible for a stimulus check? 

In cases of mixed status families where only one spouse has a Social Security number, the family would get a payment of $1,400 for the spouse with a number, plus $1,400 for each dependent who also has a Social Security number.

If both parents are undocumented but their dependent is a U.S. citizen, then that dependent does qualify for a check – as long as their parents filed their taxes with individual tax identification numbers (ITINs). 

What tax return year is the government using to determine eligibility for a stimulus check? 

Under the bill, the IRS is directed to make payments initially based on people’s 2019 tax returns or their 2020 returns if they’ve already been filed.

What if I never received my first or second stimulus check?

If you were eligible to receive the first or second stimulus check and didn’t receive it, you must claim the Recovery Rebate Credit when you file your 2020 taxes. This form is for paper filers. E-filers should have the option in whatever software they used to file.

Are stimulus checks tax free?

Yes, stimulus checks are not considered taxable income; therefore, they will not be taxed and also will not affect your eligibility for any federal government assistance or benefit program. 

Will unemployment assistance be extended? Do I have to pay taxes on my unemployment benefits?

The current $300/ week federal benefit will be extended through early September. The first $10,200 of unemployment benefits received in 2020 have also now been designated tax free for households making less than $150,000.

How can I access the rental aid in the bill?

Applying for rental assistance varies from state to state. The state of New York has the COVID Rent Relief Program from the previous rental assistance granted by the CARES Act and we are expecting them to update that program once the state is allocated the funds from the American Rescue Plan. 

For rental assistance from New York City there are two programs in place, the One Shot Deal and CityFHEPS, who you can contact until there is more information on the New York state COVID Relief Program. 

What support does this bill provide to small businesses? 

The bill funds $15 billion in Economic Injury Disaster Loans (EIDL) grants, expands Paycheck Protection Program (PPP) eligibility and dedicates an additional $7.25 billion in funding and additional resources to help small and disadvantaged businesses navigate and access COVID relief programs. More information is available here.

The bill also specifically increased the funding allocation for a new program at the SBA to offer assistance to restaurants and bars hardest hit by the pandemic from $25 billion to $28.66 billion. $5 billion is set aside specifically for smaller establishments with less than $500,000 in 2019 annual revenue. During the first 21 days, applications from restaurants owned and operated by women, veterans, or socially and economically disadvantaged individuals will receive priority.

What help is available if a change in my employment is jeopardizing my health insurance? 

If you choose to use COBRA to continue your existing employer-sponsored health coverage, the bill provides a 100% subsidy beginning in April through September 2021. For those six months, this subsidy covers all costs associated with COBRA, including the employer contribution. The only exception being individuals who are eligible for other group health coverage or Medicare – they are not eligible for the COBRA subsidy.

Additionally, this bill also provides  subsidies if you buy health insurance off your state’s Obamacare exchange. Any individual who receives unemployment at any point in 2021 can purchase an ACA silver plan for zero premium.

Additionally, under the bill, no one will have to pay more than 8.5 percent of their income for a silver plan in the ACA marketplaces. It also provides that individuals below 150% of the poverty level pay no premiums at all compared to 4% of their income currently.  

How will this bill help schools reopen? 

The American Rescue Plan makes nearly $130 billion immediately available to State Education Departments so they can: 1. Get schools open safely 2. Keep schools open safely 3. Make up for lost learning time. The American Rescue Plan also provides resources for higher education, Head Start and childcare facilities.