Relaunch checks: no fourth round in progress

Congress, which is expected to approve the money, is unlikely to consider increasing spending on out-of-pocket payments as the economy rebounds. While there are a few Support Democratic lawmakers for recurring payments, the party has a slim majority in the House and Senate, and limiting the third round of payments was a key priority for moderates during negotiations for the latest pandemic relief plan adopted in March.
Instead, lawmakers are focusing on a massive infrastructure bill that could be tackled this summer. A bipartisan preview of the package released last week does not include any direct payments. President Joe Biden is also pushing Congress to pass his U.S. plan for families, but that doesn’t call for a fourth round of stimulus payments either. Instead, he calls for making community colleges free, daycares more affordable, and providing guaranteed sick and family leave.
But there is still pandemic aid already approved by Congress headed for American families. The Internal Revenue Service is making payment adjustments for people who lost income in 2020 and owe more money than they originally received, and some families are expected to receive advance payments from the government. expanded child tax credit. Some people still receive federal unemployment benefit assistance, although several states ended these payments early in an attempt to get people back to work.
Most of the third round payments have been made, but money is still being sent to those who lost income in 2020 and qualified for more than they originally received.

Known as “plus-up” payments, the money automatically goes to people whose 2020 tax returns show they missed when the first two sets of checks – which were sent based on the tax returns. of 2019 – have been released. More than 8 million people received these additional payments this year.

The government also continues to send payments to people about whom the IRS did not previously have enough information, but who have recently filed tax returns. Many of them are very low income individuals who are not normally required to file income tax returns because their income is below the reporting threshold. They were encouraged to file this year to claim the stimulus money they are entitled to.

More money is on the way for families with children

The pandemic assistance program adopted in March also increased the amount of the child tax credit. These payments will be sent periodically starting July 15th.

More than 36 million families could be eligible for the payments. Most will not have to do anything to receive the money, which will be based on the information provided on the 2020 or 2019 tax returns.

Parents can now check their eligibility online using a new IRS tool and opt out of monthly payments, instead of receiving the full credit as a lump sum when they file their tax return next year . Low-income families who do not normally file an income tax return may also sign up for online payments.

These payments will technically constitute an advance on a 2021 tax credit. Eligible parents will receive $ 3,600 for each child under age 6 and $ 3,000 for each child under age 18. Until now, the credit could only reach $ 2,000 per child under 17. At least half of the amount will be paid over the summer, and the rest will go into next year’s tax refund.

The enhanced portion of the credit will be available to single parents with an annual income of up to $ 75,000 and joint tax filers earning up to $ 150,000 per year.

Congress also made the child tax credit fully refundable so that more low-income families could benefit from it. Previously, if the credit exceeded the taxes owed, parents could only receive a maximum of $ 1,400 in reimbursement. These households must also have earned an income of at least $ 2,500. The change could make 20 million more children eligible.

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