Plus-up payments of $1,400: You only have a few days left to apply

There are only a few days left to qualify for the $1,400 plus-up payments. The deadline to claim plus-up payments is getting closer and c...

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  • There are only a few days left to qualify for the $1,400 plus-up payments.
  • The deadline to claim plus-up payments is getting closer and closer.
  • The plus-up payments are part of a law signed by President Joe Biden in March.

Don’t let the money go to waste. There are only four days left to sign up for the $1,400 plus-up stimulus payments. You risk missing out on that financial aid, as the deadline set by the Internal Revenue Service (IRS) is fast approaching, less than a week into the New Year.

The plus-up payments are part of the American Rescue Act signed by President Joe Biden in March. Under this law, some Americans can receive a payment of $1,400 if they qualify for a so-called plus-up check, according to The Sun.

Who would receive the plus up payments?

plus up payments

Plus-up, or additional, payments will be sent to those who received a stimulus check based on their 2019 tax return or information obtained from the Social Security Administration, according to The Sun.

To be eligible for the plus-up payment, you must have earned less money in 2020 compared to 2019. For example, if something changed on your 2020 tax return—if you earned less money or added a dependent—you can be eligible for plus-up payments.

Don’t wait for the deadline to apply for plus-up payments

plus up payments
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Americans looking to get a surprise stimulus payment should act quickly because the IRS set a December 31 deadline to issue payments. That is, the IRS will not issue plus-up payments after that date, the Sun report emphasized.

The easiest way to do that is to provide a 2020 tax return. Once the IRS has that, it will assess whether or not you are eligible. Americans can check the status of their stimulus check using the Get My Payment link on the IRS website.

What income must I have to apply for the plus-up payments?

plus up payments
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About 500,000 plus-up payments have been made through direct deposit, while the rest were issued via checks, The Sun said. Cassandra Kirby, an executive at the wealth advisory firm Braun-Bostich & Associates in Pittsburgh, told the newspaper: “Let’s say that a married couple with a child had an adjusted gross income of $165,000 in 2019, and because their income was more than $160,000, they are not eligible for any part of the third payment.”

The expert added: “However, in 2020, they had another child, and their adjusted gross income dropped from $165,000 to $155,000. Thus, they would fall within the threshold of $150,000 to $160,000 with an additional dependent and would be eligible for $2,800 in stimulus money.”

A stimulus payment of up to $8,000 will be sent to families with 2 children in 2022

Send checks of up to $ 3,000 to thousands in the United States
Photo: Shutterstock

Families with two children could receive a stimulus payment of up to $8,000 in 2022. Parents could claim the money if they have children under the age of 13 and an annual income of less than $125,000, The Sun explained on Saturday, December 25.

The economic aid is called the tax credit for child and dependent care expenses. Its objective is to help working families offset the expenses of caring for their children during the pandemic and the growing wave of the new Omicron variant.

Stimulus payments for families with 2 children

stimulus payment
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Among the expenses that can be covered by this stimulus payment are transportation, housekeeping, babysitting, before- and after-school programs, day camps, and day care centers. The money can also be used to care for dependents with disabilities, The Sun noted.

How much can be received with this stimulus payment? In 2020 and previous years, the maximum that could be claimed for two or more children was $6,000. However, this amount has increased in 2021, thanks to the American Rescue Plan. This may come as a surprise to many families.

Who qualifies for the child and dependent care tax credit?

stimulus payment
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This year, parents can claim tax credits of up to $8,000 for one child and $16,000 for multiple children. By 2021, the maximum percentage of eligible expenses that families can claim has increased from 35% to 50%. That means applicants can receive credits of up to $4,000 in expenses for one child or up to $8,000 for two or more, The Sun said.

If you ask yourself: Who can apply for this stimulus payment, and how do you do it? Here is how: This year, there are many more Americans who are eligible for the extended care credits. This is because those with an adjusted gross income (AGI) of $125,000 or less can claim the maximum percentage of expenses. In the past, that threshold was just $15,000.

What percentage of child care expenses can be credited?

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For those with an AGI of $125,000 or more, the 50% credit percentage drops as income increases. In addition, it drops to 20% for those with an AGI of between $183,000 and $400,000 annually, The Sun reported.

The IRS explains on its website: “Taxpayers with an adjusted gross income of more than $438,000 are not eligible for this credit even though they may have previously been able to claim this credit.”

The tax credit must be requested

stimulus payment
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The Sun noted that childcare credits are only available to parents with children under the age of 13. Unfortunately, the checks are not sent to the families automatically. Parents have to request them to receive the money.

Checks can be claimed when filing your income tax return for 2022. According to the IRS, if one spouse was out of work during the year, you could still claim this type of credit if you are, “actively looking for a job, and work-related expenses must be incurred in order for you and your spouse to work or look for work.”

IRS explains benefit details

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The IRS adds: “You (and your spouse in the case of a joint return) must have earned income to claim the credit. Earned income includes wages, salaries, tips, other taxable employee compensation, and net earnings from self-employment.”

In turn, the IRS stated: “Net losses from self-employment reduce earned income. Earned income also includes strike benefits and disability benefits that are reported as wages. Unemployment compensation is not included in earned income.”

The post Plus up payments of $ 1,400: you have a few days left to apply if you don’t want to lose money appeared first on Mundo Hispanico.

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