More Stimulus Money Coming in the Way For These Americans
As Americans await lawmakers to reach an agreement to approve President Joe Biden’s climate and social spending plan, some wonder whether there is a chance they would any kind of financial support from the government.
Many are eager for some help. A petition for stimulus checks of $2,000 per month for adults has attracted almost 3 million signatures.
Separately, advocacy group The Senior Citizens League has called for $1,400 stimulus checks to help older Americans stave off the negative effects of inflation and other effects of the pandemic.
Families can still count on additional aid at tax time, due to more generous tax credits via the American Rescue Plan Act.
Many Americans have money coming to them if they still have not received all that was due them from the three stimulus checks, or if they are eligible for the enhanced child tax credit or earned income tax credit.
“It could be quite a bit of money for people who may be struggling in a rough economy,” said Amy Hanauer, executive director at the Institute on Taxation & Economic Policy, a nonpartisan think tank.
Some individuals and families may still get some stimulus payment through what’s known as the Recovery Rebate Credit.
Many families have received monthly payments if they qualify for the higher child tax credit that was put in place for this year.
If families did not know about the advance payments or never received them, they can claim the full sums when they file.
“It definitely makes a lot of sense for families to file their taxes and get that child tax credit because it could be quite a bit of money if you have more than one child,” Hanauer said.
The earned income tax credit, which helps low- to moderate-income workers, has also been temporarily made more generous for 2021.
Individuals and families who were not previously eligible for this credit might qualify this year. The credit is now available to younger workers and has no age cap for older workers.
It has also been made better for filers who do not have qualifying children, with a maximum credit of $1,502, according to the IRS. Childless workers need to have earned income below $21,430, or $27,380 for spouses filing a joint return, and be at least 19 years old to qualify.
Families with children earning up to about $57,000 can still claim this credit, Hanauer said.
The largest amount they may see from this credit is around $6,700, which would apply to a family with three children at the peak income amount, she said.
“Most families will see less than that,” Hanauer said. “But obviously we’re talking about significant dollars, especially if you can combine that with the child tax credit.”