The American Rescue Plan distributed hundreds of millions of dollars to residents in the United States who suffered through the coronavirus pandemic's economic effects and gave away $1,400 stimulus checks to eligible families, but how do you know if you can receive the same payments?
The stimulus payments also gave families an additional $1,400 for each child in the household. However, some people who were expecting to give birth in 2021 did not receive their payments because their child was born when the money from the American Rescue Plan was distributed.
New $1,400 Stimulus Checks
This meant that these families will most likely have to wait longer to receive their financial support from the federal government. Authorities assured that these households would not be left out from receiving the stimulus money.
While there is no way for the Internal Revenue Service to know if a family recently had a baby, households can notify the agency when they file their 2021 tax returns to report their new dependent. This process is much more important for families who do not normally fix returns because it is the only way to claim the money, Fox Baltimore reported.
However, families will have to abide by the rules of the initial $1,400 payments, such as income thresholds. The IRS also said there was no limit to the number of dependents that can receive the $1,400 stimulus payments.
Despite this, a fourth stimulus check is unlikely to be passed by lawmakers as Americans continue to struggle financially amid the COVID-19 pandemic. The House and Senate are turning their focus on the $3.5 trillion federal budget package and the $1 trillion infrastructure bill. However, residents can still expect to receive relief aid for this year and next year as lawmakers have not entered discussions on a potential new stimulus relief package.
The expanded child tax credit gives money to families depending on the number of their dependents. The next distribution will be sent out on Sept. 15 and was signed into law under the American Rescue Plan, CNET reported.
Other Relief Packages
A supplemental "plus-up" payment will also be distributed by the tax agency, which will give out payments for owed stimulus checks. Teachers and school staff in some states will also receive $1,000 "thank you" payments. California residents, on the other hand, will see another round of Golden State Stimulus Checks worth $600 up to $1,100 in September. A petition has also called for the distribution of $2,000 monthly stimulus checks and continues to gain support from residents.
Families who welcome newborn babies this year after the distribution of the $1,400 stimulus checks will most likely receive their money in 2022. The income requirements are no more than $75,000 per year for single filers and $150,000 per year for couples filing jointly. Households who earn more than these values will see a reduction in their payments depending on how far their annual salary is compared to the thresholds.
The child tax credit, on the other hand, will give out $3,600 for each dependent under six years and $3,000 for any child six years and older, Fortune reported.
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