This month, millions of families will get their third Child Tax Credit payment and California residents will receive another stimulus check. What money is coming to you?
Incentive checks and advance child tax credit payments have provided much-needed cash to millions of families during the pandemic. As families across America continue to suffer financial insecurity and the delta version continues to rise, there is much support for more stimulus aid: A petition calling for a $2,000 monthly check has now gathered more than 2.85 million signatures.
But we’re not going to see a fourth stimulus check this year. With Congress focusing on a $1 trillion infrastructure bill and a $3.5 trillion federal budget package, another economic impact payment is off the shortlist. However, some families may receive another incentive payment of up to $1,400 if they have a child or adopt this year – though that probably won’t come until 2022.
Other IRS funds include supplemental “plus-up” payments for stimulus funds owed from the IRS, as well as tax refunds on 2020 unemployment compensation. And this week, California residents will start seeing another round of Golden State Stimulus checks for $600 (or up to $1,100). A $1,000 “thank you” payment is also being made to teachers and school staff in several states.
We’ll provide the latest information on incentives, increased child tax credits, and other relief assistance below. How to check your tax refund if you haven’t received it yet, and what you need to know about unemployment tax breaks. We update this story frequently.
Stimulus that could be on the way this year
Child Tax Credit Payments for Families: A temporary expandable of the Child Tax Credit for 2021 sends families up to $3,600 for each child — you can calculate your total here. Advance partial payments of up to $300 per dependent, which began this summer, are issued monthly through the end of the year (next falls on September 15), with the final payment in 2022. Parents also have the option of deferring. Receive monthly checks in advance and pay them in the spring instead. There is no cap on the total credit amount that can be claimed by a family with more than one child. If the credit exceeds the amount owed in taxes, families will receive the additional amount as a tax refund the following year. Also, low-income families may qualify for the maximum credit. Here’s more information on child tax credit payment dates and eligibility.
Additional federal stimulus funds: The third stimulus payment of up to $1,400 is still being issued in batches to eligible people. The IRS is also sending out “plus-up” payments, which are extra money you’ve already received (based on your 2019 return) and the amount you’re expected to receive (based on your updated 2020 return). is the difference between. Return). Also, if someone in your family becomes a dependent in 2021, such as a newborn or foster child, they may also be eligible for a payment of $1,400. According to the tax agency, you must claim the recovery rebate credit on your 2021 tax return that you will file in 2022 in order for any newly qualified dependents to receive the third payment.
Incentive payments to Californians: California has approved two rounds of state-level stimulus payments to eligible residents. Called Golden State Stimulus I and II, these payments are intended to support low-income Californians and help those facing hardships because of the pandemic, the state said. About two-thirds of residents qualify for the Extended Golden State Stimulus II, which amounts to a one-time payment of $600 (with an additional $500 for eligible families with children), and checks start going out in September. To qualify, you must have been a California resident for most of 2020 and will still be living there, filed a 2020 tax return, earned less than $75,000 (adjusted gross income and wages), a Social Security number or a Individual Taxpayer Identification Number, and your children cannot be claimed as dependents by any other taxpayer.
Bonus payments to teachers: As part of the American Rescue Plan, state and local governments received $350 billion in aid. Most of that aid will go to schools, with some states deciding to offer “thank you” bonuses of up to $1,000 to their teachers and other school workers. The participating states are Georgia, Florida, Tennessee, Colorado, Texas, and California. It is likely that other states will approve similar funds in the future, as they have until 2024 to spend the fund.
Could the fourth stimulus check still happen in 2021?
Researchers have found that the first three stimulus checks helped reduce hardships such as food inadequacy and financial instability. So far, during the pandemic, eligible adults have received up to $3,200 and children up to $2,500. For struggling families, this is not enough to make up for lost wages and benefits.
Since the American Rescue Plan, the White House has proposed several packages, including the American Jobs Plan and the Build Back Better Agenda, but they do not call for more direct assistance. According to a June statement by White House Press Secretary Jen Psaki, President Joe Biden is “open to a range of ideas” regarding stimulus aid, but he has already set forth what would be “most effective in the short term”. .
The new scaled-back of the $1 trillion bipartisan infrastructure deal, which was agreed in the Senate on July 28, doesn’t include anything related to “human infrastructure”—be it child care, better wages or jobs. does not address. Training. Instead, those elements could be included in a proposed $3.5 trillion reconciliation package. The Senate took the first step toward approving a comprehensive package through a budget proposal, and the House recently followed suit.
It’s been a few months since Democratic members of the House and Senate argued for another stimulus check. In late March, a group of lawmakers asked Biden to include regular stimulus payments (PDF) in his next stimulus package. In May, a similar request was made by several members of the House Ways and Means Committee (PDF). Citing rising poverty and rising debt among Americans, he noted that “most people spent relief checks on monthly expenses or essentials like food, utilities, rent and mortgage payments.”
Latest on petition for $2,000 stimulus check
The Change.org petition that has gathered more than 2.85 million signatures has called on Congress to send a fourth stimulus check of $2,000 for adults and $1,000 for children on a monthly basis for the rest of the pandemic. The petition states that “recoveries have not reached many Americans” and points to the need for immediate checks and recurring payments so that “we can keep our heads above water.” While the Change.org petition is close to becoming one of the most popular on its website, whether it will have any effect is another question.
Can Congress approve more relief funds in the future?
While there’s a lot we still don’t know and much is up for debate, Americans may have extra cash in their pockets in the following scenarios:
If child tax credit growth is made permanent: Money from the expanded child tax credit debuted this summer with monthly payments to millions of low- and middle-income families with children. In a July 7 speech, Biden called on Congress to extend the extended child tax credit until 2025. Other aspects of the US family plan related to health care costs and medical leave are yet to be negotiated in the upcoming $3.5 trillion Democratic spending plan.
If there is a minimum wage increase: Some senators continue to look for ways to boost the federal minimum wage, which is $7.25 per hour. Some supporters want to set the bar at $15 an hourly wage, and others just want to go up to $11 an hour. In recent years, many states, localities and businesses have implemented minimum wage increases above the federal level. However, discussion of a new national rate of $15 an hour has stalled in recent months, and it is unlikely to be implemented any time soon.
In the meantime, here’s what to know about tax refunds for unemployment benefits recipients in 2020 and the future of federal jobless benefits.