As 2021 draws to a close, one of President Biden’s most significant domestic accomplishments from his first term in office is still casting a long shadow over the country. In fact, it is expected to continue to do so well into 2022.
We’re talking about the $1.9 trillion “American Rescue Plan,” Vice President Joe Biden’s stimulus plan that has been responsible for more than half a dozen stimulus payments so far this year. Every month since July, it has resulted in at least $15 billion in economic relief being provided. In addition, it is responsible for a new stimulus check that will be released next week.
Indeed, the federal government has spent an unprecedented amount of money in response to the coronavirus pandemic, as evidenced by the sums listed above. Not only that, but it goes even further. In addition, individual states are providing stimulus funds to their residents. In addition, they receive funds for their children and other benefits.
Pandemic Electronic Benefit Transfer
In the case of the latter, families with as many as 500,000 children in the state of Alabama are about to receive an additional $375 payment this week, if they haven’t already gotten it before.
Alabama students enrolled in the National School Lunch Program will benefit from the payments, which will be put onto pandemic-EBT (P-EBT) cards and distributed to those who qualify.
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The help was announced by the Alabama Department of Human Resources, and it will amount to about $180 million in total. The money comes from the larger pool of federal COVID-19 disaster assistance funding, which is a good thing.
“No child should ever have to worry about where his or her next meal will come from,” Alabama Department of Human Resources Commissioner Nancy Buckner said in announcing the fund. “These benefits will provide financial assistance to countless families, thereby lowering the likelihood of child starvation.” We are excited to continue on our successful cooperation with the USDA-FNS, the Alabama Department of Education, and our advocates as we bring these critical resources to Alabama’s children.”
According to the USDA Food and Nutrition Service, the P-EBT benefit provides qualified school children with temporary emergency nutrition benefits, which are placed onto EBT cards, which can then be used to purchase food at participating retailers.
In accordance with the service’s guidelines, “children who would have qualified for free or reduced-price meals under the National School Lunch Act if their schools had not been closed or operating with shortened hours or reduced attendance for at least five consecutive days are eligible to receive P-EBT benefits.”
A new Child Tax Credit Stimulus Check has been issued.
During this time, another stimulus payment derived from the “American Rescue Plan” is going to begin showing up in bank accounts around the country. Beginning on July 1, the sixth and last child tax credit payments will be made on December 15, bringing an end to a monthly series of stimulus payments that began in August. What you need to know is as follows:
The majority of recipients will receive checks that are identical to the preceding five. They’ll provide a maximum of either $250 or $300 per eligible child in a home, depending on the amount of money raised. So, over the course of the six checks, families will have received a total of $1,500 or $1,800 per child, depending on the amount of money received.
Most significantly, this might mark the end of the monthly child tax credit payments. By the end of this month, we should be able to confirm whether or not this is true.
President Biden is attempting to get one more significant piece of legislation passed by the Senate, which is now on hold. What are some of its provisions? There has been a proposal to extend these checks for another 12 months.
In 2022, there is yet more to come.
However, regardless of whether or not those inspections are prolonged until 2022, there is something else to be mindful of.
The child tax credit will be split in half for the second time next year, as previously announced. The six-monthly cheques that were written this year were essentially an advance payment. The remaining amount will be credited to your account as a tax credit next year when you file your federal income tax return.
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Keep an eye out for a letter from the Internal Revenue Service along similar lines in the coming weeks. In there will be detailed information on the payments you received this year. And you’ll want to double-check that the information in that letter corresponds to the information in your federal tax return.
