Are We Getting Another Stimulus Check In 2021
Whether we get another stimulus check in 2021 depends on how much momentum the proposals for more checks gain.
There are still some people who’ve not yet received the third stimulus check, but we’ve got a handy guide for what to do if you’re missing your stimulus check payment. It’s worth checking if you’re eligible for most recent stimulus check as it’s worth up to $1,400 per person.
The IRS has reported that taxpayers whose direct-deposit information is on file should have seen their payments reach their bank accounts in April. Those who are waiting on paper checks and debit cards can expect to receive their funds in the coming weeks.
If you have received the third stimulus check and feel it’s too low, then take a look at our guide to the stimulus check calculator as that can show you what your own eligibility looks like. Keep in mind that there are a few factors that will affect the amount you are due or have received.
You Could Have More Than 1 Stimulus Check Here’s How You May Get 3 Payments
The third stimulus check is just one of three ways you and your family could get direct payments from the government over the next year. Here’s every way you benefit.
There are still stimulus checks in the mail.
The IRS continues to send millions of stimulus checks to eligible individuals and families. The latest wave is going out to 4 million Americans, the IRS said. That $1,400 amount, however, is just one piece of aid the federal government is making to people struggling through the pandemic.
Along with the third stimulus check, two other payments promise long-term support for individuals and families: renewed weekly $300 federal payments to unemployed workers and an expansion to the child tax credit that’ll send periodic payments to eligible families throughout the year — here’s when those CTC payments could arrive.
Here’s what you need to know about all the ways you can get more money through these federal programs, and here are seven ways to get more money back on 2020 taxes. This story was recently updated.
Building Your Emergency Fund
You might have realized the importance of an emergency fund in this Coronavirus lockdown crisis. You may require money at any time, and no one knows when an emergency arises when you require funds.
Hence, creating your own emergency fund is crucial, and you need to focus on this at the earliest possible. This stimulus check is a great opportunity for you to increase your savings.
Also Check: Is The First Stimulus Check Taxable
When Is The Stimulus Coming
As youve figured out, this Friday, October 15, youll be getting your next check. Itll either be directly deposited into your bank account or youll be receiving it in the mail a few days later. Meanwhile, the next stimulus check dates after this one are November 15 and December 15. You may be receiving more in 2022, but that could be after you file your taxes.
What If I Didn’t Get The First And Second Stimulus Payments
The IRS said anyone who was eligible to get the first or second stimulus payments but didn’t, needs to claim a 2020 Recovery Rebate Credit and file a 2020 tax return. Even if someone isn’t required to file? The IRS says yes.
However, the IRS said that the third payment of $1,400 will not be used to calculate the 2020 Recovery Rebate Credit.
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More Third Stimulus Payment Money For Some In 2022
Parents who added a child in 2021 could be getting up to $1,400 after they file their 2021 taxes this coming spring thanks to the American Rescue Plan. The money won’t come as a direct check but will be part of the overall tax return.
The 2021 Economic Impact Payment — colloquially known as the third stimulus check — was actually an advance on what is called the 2021 Recovery Rebate Credit. What that means is that the $1,400 stimulus check most individual Americans received in 2021 is, in fact, money they would have gotten after filing their taxes in the spring of 2022 as a Recovery Rebate Credit.
In other words, millions of Americans already got part of their tax refund 12 months early.
“The bottom line is that’s money that’s going out almost immediately to millions of people as a tax credit in advance of putting it on a tax return in the next year,” said Raphael Tulino, IRS spokesman.
However, the IRS was going off of 2019 or 2020 tax returns for its information on the third EIP. It was using that information to determine if taxpayers would get stimulus money for their dependents. If eligible parents had a child born into their family in 2021, they can request the Recovery Rebate Credit on their taxes to get the payment for that child.
It gets more complicated with adoption because all the paperwork and processes to finalize the adoption must be completed first.
This does not pertain to the first or second stimulus payments that were paid in 2020.
Heres Who Can Expect More Stimulus Payments
As background, the federal government is still giving select workers stimulus payments, and states have used some of their federal relief to provide teachers bonuses, with some issuing stimulus checks to state residents who meet income requirements.
But another group eligible for stimulus payments might surprise you: babies born in 2021. The newest Americans qualify for payments up to $1,400 from the third round of federal stimulus checks that millions of people received in March. To qualify for the full amount, your household must meet income requirements: $150,000 for married people who file a joint return or $75,000 for individuals.
Eligible new parents who inform the IRS they had a baby or babies when they file their 2021 taxes next year will still receive a stimulus check for those children.
Plus, people with 2021 newborns might not realize that theyre eligible for the expanded child tax credit thats part of the governments COVID stimulus package.
You could have opted to inform the IRS this year about your new family member to get the early monthly tax credit installments that the agency paid in 2021. If you didnt, youll get the full $3,600 credit when you file your next tax return in 2022 and claim the baby as a dependent for the first time.
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What’s Going On With The Student Loan Debt Forgiveness
In March, President Joe Biden’s administration approved a $1 billion loan forgiveness for students who were defrauded by their colleges, or if their school shut down. The change is projected to affect 73,000 people.
Though forgiving student loan debt has been part of the discussion since January, Senate Democrats and the president have different dollar figures in mind for how much to cancel. Biden on Feb. 16 said he supports canceling $10,000 in student debt per borrower and extending the pause on student loan repayment. His figure is at odds with a Senate Democrat proposal, however, that calls for canceling up to $50,000 in student debt per borrower.
“I do think that, in this moment of economic pain and strain, that we should be eliminating interest on the debts that are accumulated, No. 1. And No. 2, I’m prepared to write off the $10,000 debt, but not $50,000,” Biden said. While the House and Senate versions of the bill don’t forgive student debt, the legislation includes a provision that will make tax-free any forgiven student loan, according to The New York Times.
Canceling student debt didn’t make the bill.
Other Payments And Ubi
Some other states have sent out direct payments.
This includes Maine and Seattle, and Maryland, which are sending stimulus checks worth $285, $3,000, and $500.
Some cities are also implementing universal basic income programs, which is a set of recurring payments.
Teens in New Orleans, Louisiana will start getting $350 in monthly payments this month as part of the states financial literacy program.
Households with low earnings in Pittsburgh, Pennsylvania will get $500 a month in payments for two years.
Low-income households in Chicago will get $500 in monthly payments.
And Columbia is sending out $500 per month to 100 low-income fathers.
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Support For A Fourth Stimulus Check
A group of Democratic Senators, including Ron Wyden of Oregon, Elizabeth Warren of Massachusetts and Bernie Sanders of Vermont, sent a letter to President Joe Biden at the end of March requesting recurring direct payments and automatic unemployment insurance extensions tied to economic conditions.
As the Senators reasoned in their letter, this crisis is far from over, and families deserve certainty that they can put food on the table and keep a roof over their heads. Families should not be at the mercy of constantly-shifting legislative timelines and ad hoc solutions.
An earlier letter to President Biden and Vice President Kamala Harris from 53 Representatives, led by Ilhan Omar of Minnesota, carved out a similar position. Recurring direct payments until the economy recovers will help ensure that people can meet their basic needs, provide racially equitable solutions, and shorten the length of the recession.
Additional co-signers included New Yorks Alexandria Ocasio-Cortez and Michigans Rashida Tlaib, two other notable names among House Progressives. The letter didnt place a number on the requested stimulus payments. But a tweet soon after put it at $2,000 per month for the length of the pandemic.
$2,000 monthly payments until the pandemic is over.
READ MORE:
Fourth Stimulus Check Deadline Is 2 Weeks Away: New $1400 Payments Coming Soon
Now that the sixth and final child tax credit stimulus payment of 2021 is making its way out to millions of recipients, heres one update you dont want to overlook about all this. Theres actually one more check after this one that the IRS is sending out over the final weeks of 2021. And weve got all the details about it below so that you dont have to wonder wheres my stimulus check? or when it will arrive.
The payments were referring to are the final so-called plus-up payments of the year. And they come at a pivotal time for the stimulus check effort in the US. The Biden administrations push to extend the monthly child tax credit payments into 2022, for example, is currently stalled in the Senate. Meanwhile, the results of a new survey are out that provides important context around the payments and what might happen if they dont continue.
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New $1400 Stimulus Check Coming Soon
Giving birth this year is the deciding factor, as far as who gets one of these new payments or not. Parents who welcome a newborn child at any point in 2021 are likely eligible for another stimulus payment, for $1,400, in 2022, according to both Fortune and Insider. They would get that check upon filing their federal taxes in 2022.
The way things stand now, what that also appears to mean is that parents would not only get that $1,400 check. But any parent who welcomes a newborn child in 2021 also likely qualifies for the temporarily expanded child tax credit. We say likely, because theres still an income threshold. Sorry millionaires, not you!
As weve explained on numerous occasions now, the latter was made possible by the $1.9 trillion stimulus law from earlier this year. However, depending on when the child is born such as if its in late December? For those parents, it would be too late to have this years monthly child tax credit checks reflect that change. In which case, the parents would get the money next year, after filing their taxes in 2022.
How To Claim It
Along with the requirement of adding a new dependent in 2021, you must also meet other requirements of the American Rescue Plan Act to get the payment. For instance, the full $1,400 stimulus payment would be available to individuals with income less than $75,000 .
Payments phase out if your income exceeds the $75,000 threshold income. Moreover, those with income more than $80,000 are not eligible for any money.
If you meet all the requirements, then the stimulus money will arrive as part of your 2021 refund. Even if you dont normally file a tax return, you must file a 2021 tax return to claim your stimulus money.
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Also Check: When Will We Get The Third Stimulus Check
New Orleans And Los Angeles
Similar to Chicago’s program, the city of Los Angeles is launching an even bigger guaranteed income program for select residents. The latter’s BIG:LEAP program will give special stimulus payments totaling $1,000/month for an entire year to 3,200 people.
$1,000 a month can dramatically change a familys circumstance, helping them to meet basic needs and eliminate the stress of living paycheck to paycheck, Los Angeles city official Abigail Marquez said about this program.
And then there’s New Orleans, where officials have put their own twist on this program.
More than 100 young people in the city between ages 16 and 24 will get 10 payments starting in the spring. Those payments will each total $350, loaded onto an ATM card. The Black-owned online bank Mobility Capital Finance is providing the cards. And during a press conference, New Orleans Mayor LaToya Cantrell said the money is going to city residents who are either jobless or not attending school.
Direct Deposits Turned Into Paper Checks
Because of what the IRS blamed on a technical error, about 15% of families who got their first child tax credit check on July 15 as a direct deposit were sent a paper check, instead, for payment #2. That was on August 15. But the tax agency says this mistake is expected to be resolved with the payment thats coming next week.
And after next week, there will be three child tax credit payments remaining. Those will come on October 15, November 15, and December 15.
After that, families are also scheduled to get the aforementioned child tax credit in 2022. The amount of that credit can be determined by adding up the six checks received between July and December of this year.
Visit the IRS Child Tax Credit Update Portal to check if youre set up to receive a direct deposit or paper check next week.
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A New $3000 ‘stimulus Check’ Is Coming In July
You may very well have to give some of it back next year.
Key point: While more money in your pocket is clearly a good thing, this new program does have the potential to create some pain for some Americans next year.
The Internal Revenue Service has put many financially strapped parents minds at ease by confirming that monthly payments from the new $3,000 child tax credit will begin hitting bank accounts in July.
This is all possible because President Joe Bidens $1.9 trillion American Rescue Plan expanded upon the child tax credit that generally allowed families to claim a credit of up to $2,000 for children under the age of seventeen. But that particular benefit now has been extended to lower-income families who otherwise wouldnt receive such a .
Families are now eligible to claim as much as $3,600 per year for a child under the age of six and up to $3,000 annually for children between six and seventeenwhich means for a family headed by a couple earning less than $150,000 or an individual making under $75,000, they are eligible to get a $250 or $300 monthly payment.
In one particular scenario, a family of four making less than $150,000 could potentially expect to net more than $14,000 in coronavirus pandemic relief this year alone.
We will launch by July 1 with the absolute best product we are able to put together, IRS Commissioner Chuck Rettig recently told the Senate Finance Committee.
We are trying to get it as user-friendly as possible, he added.
Why Isnt A Third Stimulus Check Guaranteed
Whether a third stimulus check will happen or not is up to Congress. As per the current discussion in Washington and Bidens Campaign, they promise to help everyday Americans with some direct payment.
A third stimulus check, under Present Bidens plan, the $600 second-round stimulus check would be increased by $2,000. Biden calls for $1,400 payments as part of the $1.9 trillion relief package.
Now, who will qualify for the $1400 stimulus check? This would include elderly parents staying with their adult children, college students aged 23 years or even younger, and children over 16 years of age. Thus, these people will qualify for the next stimulus check.
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Families get monthly payments worth up to $300 per child for those under the age of six and $250 for dependents between the ages of six-17.
But, the amount depends on how old your kids are and how late you started claiming the advance tax credits.
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Families that have recently signed up for advance child tax credits could receive monthly payments of $600.
Parents will receive up to $1,800 this year before claiming the remaining amount when tax returns are filed in 2022.
Child tax credit payments are based on Americans’ previous tax returns but the program is open to low-income earners.
Single Americans do not have to file a tax return if they earn less than $12,200 a year.
There is the option to opt-out of advance child tax credit payments and its advised parents unsubscribe if they are worried about owing money to the IRS.