BALTIMORE – Another round of stimulus payments is expected to be sent out by the federal government this fall.
The next payment is scheduled to come out in about three weeks. The payments are part of the American Rescue Plan that President Joe Biden signed into law in March.
According to Biden last March, “While it was different for everyone, we all lost something.”
This speech came just hours after Biden signed into law a $1.9 trillion relief package that he said will help defeat the virus, nurse the economy back to health and deliver direct aid to Americans struggling to make ends meet.
Furthermore, in the mid of October, most American families will receive another payment as part of the advance federal Child Tax Credit.
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Important changes to the Child Tax Credit will help many families get advance payments of the credit starting this summer:
- Half the total credit amount is being paid in advance monthly payments. See the payment date schedule.
- You claim the other half when you file your 2021 income tax return.
Advance payments are sent automatically to eligible people. You do not need to take any action if we have your tax information.
The American Rescue Plan expanded that tax credit and allowed for the first half of that credit to be paid directly to families.
The payments are coming each month until December. On Sept. 15, the last round of payments went out — about $15 billion dollars worth of payments. However, the IRS said that there were some problems delivering that money.
The American Rescue Plan is delivering direct relief to the American people, rescuing the American economy, and starting to beat the virus. For a full overview of what’s in the plan, click here.
Recommended Read: IRS Demands Payback of $600, $1,200 & $1,400 Stimulus Checks Benefits
How does direct relief work under the American Rescue Plan?
$1,400 per-person checks
- Single people making less than $75,000, heads of household making less than $112,500, and married couples filing jointly making less than $150,000 qualify for stimulus checks. People making up to $80,000 will receive partial payments.
- Those with dependents will receive $1,400 per person, including college students and seniors, claimed as dependents.
Increase the Child Tax Credit, Earned-Income Tax Credit, and Child and Dependent Care Tax Credit
- For those without children, the American Rescue Plan increased the Earned-Income Tax Credit from $543 to $1,502.
- For those with children, the American Rescue Plan increased the Child Tax Credit from $2,000 per child to $3,000 per child for children over the age of six and $3,600 for children under the age of six – and raised the age limit from 16 to 17.
- The American Rescue Plan also increased and expanded the Child and Dependent Care Tax Credit, making more people eligible and increasing the total credit to $4,000 for one qualifying individual and $8,000 for two or more.
Extend unemployment insurance
- The American Rescue Plan extended unemployment benefits until September 6 with a weekly supplemental benefit of $300 on top of the regular $400 benefit.
- The first $10,200 of unemployment benefits will be tax-free for people with incomes less than $150,000.
Small business support
- The American Rescue Plan will provide emergency grants, lending, and investment to hard-hit small businesses so they can rehire and retain workers and purchase the health and sanitation equipment they need to keep workers safe.
- The American Rescue Plan also includes a Small Business Opportunity Fund to provide growth capital to main street small businesses in economically disadvantaged areas, including minority-owned businesses
Lower health insurance premiums and provide 100% federal COBRA subsidy
- The American Rescue Plan will lower or eliminate health insurance premiums for millions of lower- and middle-income families enrolled in health insurance marketplaces. This will help well over a million uninsured Americans gain coverage.
- A family of four making $90,000 could see their monthly premium come down by $200 per month.
- The American Rescue Plan provides a 100% federal continuation health coverage (COBRA) subsidy through September 1, ensuring that those who lose their jobs or lose their health care due to reduced hours don’t lose their health care.
