Will more stimulus money be available next year?
Lawmakers have been hesitant to take action to deliver a fourth coronavirus relief check, despite repeated calls for another direct payment – and despite the rapid spread of COVID-19 as the virus mutates into different, more contagious variants.
Despite the fact that no fourth stimulus check has been enacted, some Americans will still see more money deposited into their bank accounts in 2022. Here’s what you need to know to determine how much money you may be entitled to next year.
Some Americans could get $ 1,400 (or more) in 2022
The American Rescue Plan Act was enacted by President Joe Biden in March 2021 to provide a third coronavirus relief payment. These payments were $ 1,400 per adult and per dependent. Most people have received this money so far, but some people have not received the full amount.
Specifically, people who added a new dependent to their family in 2021 should be entitled to the payment of $ 1,400 for that dependent (provided they meet other eligibility criteria, such as income. lower than the authorized limit).
This includes anyone who has had a baby or adopted a child. If you add multiple dependents to your family, you could get payments of $ 1,400 for each of them. So parents who had twins in 2021, for example, could receive a total of $ 2,800 in stimulus checks.
If you are in this group, you should make sure to file your 2021 taxes as early as possible towards the end of January to claim your money back.
Some Americans could get $ 1,800 (or more) in 2022
Those who added a dependent may not be the only ones getting another payment from the government. Many other parents may also be eligible for more funds.
See, the American Rescue Plan Act also temporarily extended the child tax credit for the 2021 tax year. Prior to 2021, the credit was a maximum of $ 2,000 per child and only $ 1,400 was. refundable. The credit had to be claimed on your taxes and you either lower your tax bill with that or could get back up to $ 1,400 even if you didn’t have at least $ 2,000 in tax payable.
The American Rescue Plan Act increased the credit amount to $ 3,600 for children under 6 and to $ 3,000 for children 6 to 17 years old. And it is now fully refundable. The IRS has also been ordered to provide half of this expanded credit at a rate of $ 300 or $ 250 per child deposited into bank accounts from July to December 2021.
This means that half of the extended credit has already been provided to most people. But eligible parents can claim the remainder of the credit they’re entitled to when they file their 2021 taxes. You may be eligible for a credit of up to $ 1,800 per child that reduces your tax bill or takes the form of a larger tax refund.
Parents who added a dependent to their family in 2021 may also have missed out on the expanded child tax credit of $ 3,600 or $ 3,000 they were entitled to last year. They could get this money with their stimulus check for $ 1,400 when filing their returns for the year.
Some Americans could get $ 3,600 (or more)
Finally, some lawmakers are hoping to make the expanded child tax credit permanent.
While there are issues that could prevent this from happening, if Democrats are successful in pushing through Build Back Better, every eligible parent could be entitled to the same expanded child tax credit they received in 2021.
This could mean that they again receive up to $ 3,600 for younger children and $ 3,000 for older children. If these payments are made monthly starting in January (or early in the year), that total amount could come in 2022.
Every American should make sure they know exactly how much they are entitled to and should make sure they receive the full amount of the COVID-19 stimulus money to help them meet the ongoing challenges the coronavirus continues to present. .