- Plans pending to distribute a fourth check, approved since last March, as part of the American Rescue Plan but it will not be for everyone.
- This fourth check will be delivered, although only to some beneficiaries, in 2022.
- The payment will have a maximum value of $1,400.
According to Biden’s American Rescue Plan, a fourth check will be delivered, although only to some beneficiaries, in the year 2022, Are you eligible? We help you answer that burning question and provide you with some other details about this pending payment.
Millions of Americans have received three federal aid checks, and while some hope there will be a fourth payment, the reality is that it seems unlikely, especially since no legislator is working on such a proposal. However, it remains pending distribute a fourth check already approved since last March as part of the American Rescue Plan, but it will not be for everyone.
Fourth check for some in 2022, are you eligible?
It is important to make it clear that this new check that will have a maximum value of $1,400 will reach beneficiaries in 2022, pointed out The Sun. So who are the lucky ones who will receive this additional aid payment from the federal government?
Parents who had a child during 2021 will be eligible for an aid check similar to the one that millions of people began receiving in March with the third round of stimulus. Although it is essential that new parents declare their babies as dependents on their 2021 tax return in order to receive this payment.
Check #4 in 2022: Help for New Parents
This fourth check is intended for single parents who have reported income of up to $75,000 per year and couples who have reported income of up to $150,000 per year. If anyone is in this income range, then they are eligible to receive the full amount of the aid, that is $1,400 dollars per child.
In order for beneficiaries to receive the assistance, they must notify the Internal Revenue Service (IRS) by means of a tax return early next year, about welcoming one or more new family members.
Up to $16,000 for childcare
This is not the only help parents will be able to claim from the IRS next year. Some families may receive up to $16,000 for childcare as part of the Child Tax Credit. And this amount has nothing to do with the monthly payments already being sent.
According to him Internal Revenue Service (IRS), this aid is “a credit allowed as a percentage of expenses related to work incurred by a taxpayer for the care of qualified persons to allow him to work or look for work, ” but how does all this work?
Caring for a dependent
As of July 15, the IRS began providing families with monthly checks of up to $300 for each child under the age of 6 and up to $250 for each child between the ages of 6 and 17. So far, they have sent the checks for July, August, September and October, with those for November and December pending.
But the help for families does not end there, because the Child Tax Credit also includes, for each family that makes less than $125,000, the equivalent of 50% of expenses incurred for the care of a child under 13 years of age or of a spouse, parent or dependent who cannot take care of himself, up to a maximum amount of $8,000 dollars.
Receive up to $16,000
Payment of up to $8,000 is stipulated for the care of a single dependent, but if a family cares for two or more eligible dependents, then they can receive assistance of up to $16,000 dollars which allows them to cover expenses they have for the care of these relatives.
Of course, these would be the maximum aid amounts that would be awarded to eligible families earning less than $125,000 annually. However, if a family earns between $125,000 and $183,000 annually, it could still qualify, although it would only receive the equivalent of 20% of the expenses, explained iHeart.
How to claim your $8,000 dollars?
The IRS has indicated that beneficiaries do not have to take any action to receive the monthly checks for the Child Tax Credit; but to receive help for the care of a dependent, they will. Families will need to complete the Form 2441, where they show their income and give information on expenses they incur for the care of their dependents.
In addition to dependent care funds, the IRS continues to send monthly advance checks to millions of families and plans to continue to do so on the 15th of each month through December. The tax revenue agency only the checks for November 15 and December 15 still pending for 2021.
Up to what age do children qualify for the Child Tax Credit?
Child Tax Credit payments are available to families with children Up to 24 years! Although the advance monthly checks are only provided for young people up to 17 years old, there is also help for a smaller amount for the older ones, pointed out The Sun.
Congressman Steve Cohen explained that, “age is determined on December 31, 2021. If your child turns 18 this year, then he is not eligible for the monthly Child Tax Credit. However, the American Rescue Plan provided a one-time $500 credit for dependent children age 18 and for dependent full-time college students ages 19-24. ”
Do I qualify for assistance?
According to the IRS, couples earning less than $150,000 annually or single parents earning less than $112,500 annually qualify for maximum aid. Parents of dependent youth ages 17 to 24 also qualify for $500.
The American Rescue Plan indicates that this year eligible families will receive a total of up to $1,800 for each child under the age of 6, and up to $1,500 for each child between the ages of 6 and 17. That is, the monthly advance payments that will arrive between July and December will be up to $300 for children under 6 years old and up to $250 for children between 6 and 17 years old.
How does the Child Tax Credit work?
According to legislation passed in March, families will receive up to $3,600 for each child under 6 years of age and up to $3,000 for each child between 6 and 17 years old. The first half of that money will come through the six monthly advance payments from July to December. Parents will have to claim the $1,800 remaining next year when they file their 2021 tax return.
To determine your eligibility, the IRS is using the information you provided on your 2020 or 2019 taxes. If you are still unsure whether or not you qualify to receive these checks, the IRS recommends using the Eligibility Assistant for advance payments of the Child Tax Credit. They will ask you for some personal information in order to confirm if you are eligible or not.
Refuse help or make modifications safely
Some families prefer to decline assistance or change their payment method from physical check to direct deposit. For the payment of the month of October it is already too late, but if you plan to make a modification later, you can follow this schedule: until November 1 for the payment of November 15 and until November 29 for the payment December 15 payment.
To safely make these changes, the IRS recommends visiting Child Tax Credit Prepayments in 2021 where people can get more details that allow them to seamlessly make changes to the Child Tax Credit Update Portal“. Fourth check for some in 2022, are you eligible?