More than $90 million worth of payments has already been sent out by the Treasury department.
After several months of promises, the latest stimulus bill has finally been passed. The American Rescue Plan Act of 2021 was officially signed into law on March 11, 2021, and includes one of the largest stimulus payments to families and individuals. Unfortunately, just like the two previous coronavirus stimulus programs before it, there's confusion about when and how much money you can expect to receive. Americans with qualifying incomes could receive up to $1,400 each and $1,400 for each dependent. A one-time child credit will also provide families up to $3,600 per child, delivered in six payments this summer.
If you aren't lucky enough to have the money in your bank account, the federal government has an easy way for you to find out when your payment is coming. Just go to the IRS website and click on “get my payment.” You’ll have to enter some personal information including your social security number. The system will either tell you that your check or direct deposit is on the way, or you are eligible and the payment has not been processed yet.
To be eligible for the economic impact payment you must make less than $75,000 as an individual, $150,000 for a married couple, and $112,500 as the head of a household. Individuals will receive $1,400, married couples filing jointly will get $2,800, and each family will get $1,400 for each child under 17. People with incomes above those levels may still get a reduced stimulus payment.
Photo by cottonbro from Pexels
If you have children, you may also get additional payments later this summer thanks to the American Rescue Plan’s Child Tax Credit. The expanded credit is fully refundable, so instead of a credit on a tax return, people will get a series of payments starting in July. Families will receive $3,600 per child under age 6 and will receive $3,000 per qualifying child up to age 18. The payments will be delivered in six monthly payments from July through December of 2021. The credit is also eligible for babies who are born in 2021. The IRS will create a portal for this credit in the coming months.
The IRS also wants to remind Americans who did not receive payments from the first two stimulus payments to request a recovery rebate credit on their 2020 tax return. You can find instructions on the IRS website or your tax preparer can help you when you file your return.
Have you received your stimulus check yet? Let us know in your comments.