Time and money are running out. Federal unemployment benefits are expiring in less than a month while many people are suffering from this uncertainty. Our president is trying to quickly to pass a stimulus package that offers the financial help he believes struggling families need during the pandemic.
The proposal includes stimulus checks, as well as an expanded Child Tax Credit. With these two sources of financial relief, a family of four could get as much as $12,800 in stimulus money, depending on income and the children’s ages.
Where would the funds come from?
Stimulus checks. These are $1,400 per adult and eligible dependent including adult dependents. For a family of four, these payments would provide $5,600. This money would be delivered in a lump sum via direct deposit into your bank account, or via check or debit card. Expect it around mid-March or early April.
Expanded child tax credits: These would be worth $3,600 per child under the age of six, and $3,000 for older children up to the age of 17. A family with two children under the age of six would thus be entitled to an additional $7,200 on top of the stimulus check. Half of the year’s credit could be delivered in July, and the rest would be delivered monthly.
Who would be eligible for the stimulus money?
The $12,800 number is specifically the amount of money that could be available to a family of four people with two children under six. But if you are single, or have more or fewer children, you should be entitled to stimulus money and/or Child Tax Credits as well. You can figure out how much you would receive by assuming a $1,400 stimulus check for each person in your family and a $3,000 payment for each child over 6, or $3,600 payment for each child under that age.
There are income limits under the proposal
You are eligible for the full amount of stimulus money with an income up to $75,000 as a single filer, $112,500 as head of household, or $150,000 as a married joint filer. You are eligible for a partial payment with income up to $100,000 as a single filer, $150,000 as a head of household, or $200,000 as a married joint filer. Above those numbers, you receive no payment.
You are eligible for the full Child Tax Credit with an income up to $75,000, or $150,000 for married joint filers, after which eligibility phases out (ending at a maximum income level that has not yet been reported).
Well, we are not quite there yet. We still must wait until Congress turns the current stimulus proposal into law.
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