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Unemployment Benefits & Child Tax Credit

Friday, April 30, 2021

The 2021 Consolidated Appropriations Act (2021 Appropriations) and the American Rescue Plan of 2021 (ARP) amended three provisions to strengthen and extend unemployment benefits in the CARES Act and the ARP provides a monthly payment from the enhanced child tax credit that will begin being distributed to families in July 2021. HUD has determined that the $300/week unemployment benefit and the upcoming monthly child tax credit payment are to be excluded from the annual income calculation.

Please also be advised that if a tenant's income was not calculated in accordance with the guidance below, owners/agents must correct the form HUD 50059.

Section 2104: Federal Pandemic Unemployment Compensation (FPUC) in the 2021 Appropriations and the ARP provides eligible individuals who are collecting regular unemployment insurance an additional $300/week. Owners/agents shall exclude this unemployment benefit from the annual income calculation on the basis that it is temporary income.

Section 7527A: Advance Payment of Child Tax Credit in the ARP provides a monthly payment up to $300/week from July 2021 through December 2021. Owners/agents shall exclude the child tax credit on the basis that it is excludable income under 26 USC 6409.

In an effort to promote housing stability, owners/agents can remind residents that the $300/week unemployment benefit and child tax credit are not included in the annual income calculation and this could be used as a resource to help with unpaid rent.
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