We’ve had three stimulus checks, and now the Child Tax Credit is being distributed. But what’s next? Is there another stimulus check coming?
President Joe Biden’s new round of tax cuts are coming to Americans in the form of payments called the Child Tax Credit Payment. Biden’s aim is to end childhood poverty by giving parents money when they need it most.
But how does that affect you? When will you get money if you qualify? We’ll walk you through what’s on the horizon in terms of stimulus checks and child tax credit payments. You may have more options than you think!
Will there be a 4th stimulus payment?
There is no fourth IRS stimulus check on the horizon. But the good news is there is a child tax credit that will provide families with a monthly stimulus check. These payments began distribution on July 15, 2021. Check the status of your payment with the IRS.
Is the 4th stimulus check petition making headway?
Over 2.6 million people have signed a Change.org petition to increase stimulus checks to $2,000 per month. But it’s doubtful this 4th stimulus check petition will influence Congress to send out more money. If you’re strapped for cash, check out MoneyLion’s Credit Builder loan. Our Credit Builder Loans not only help you build credit but also gives you access to a $1,000 loan–fast! It’s an excellent option for those who could benefit from a 4th stimulus check.
Child tax credit providing economic relief
President Biden expanded the Child Tax Credit Program, which means that you can receive up to $300 per month per child. Let’s take a closer look at how this program works.
Who is eligible?
The one major caveat with this program is that it expands the child tax credit which parents already receive in the form of deductions for children. So, you can only qualify for the Child Tax Credit Program if you already receive a tax credit and fall within a certain income requirement. Here are the income requirements:
- Earn up to $75,000 as an individual with a child
- Earn up to $112,500 as the head of household
- Earn up to $150,000 as a married couple with children
Single-parent families with an income of $200,000 and married couples with a combined income of $400,000 can still receive the previous $2,000 credit. Before, if you did not owe income taxes, you could not claim the child tax credit, but Biden’s plan has expanded it to include families that don’t pay income tax.
How much will the child tax credit be?
The annual tax credit is $3,600 per child under six years of age. The yearly tax credit for children between the ages of six and seventeen is $3,000. You get to choose when and how you receive the payments.
How do I receive my payment?
There are a few choices regarding how you receive your tax credit. You can either receive it as a lump sum in 2022 or you can receive it ASAP in the form of monthly payments. For children under six, you will receive $300 per month. If your children are six or older, you will receive $250 per month.
When do payments start?
July 15th marks the first day that the child tax benefits will be rolled out. You may not see yours immediately, so check with the IRS for an exact date.
What happens when I file taxes if I already received the Child Tax Credit?
You won’t get the standard tax deduction for children you usually claim if you receive your child tax credit early. So this is something you will need to plan for if you typically count on this deduction for your taxes.
How should I use my payments?
This child tax credit is intended to cover monthly expenses that raise a child, like daycare costs. But you are not required to spend this money on this. Figure out what would benefit your family the most, and use it there. We’ve rounded up a few ideas on how to spend a stimulus check for ideas. Investing in your career has a trickle-down effect on your whole family. Try investing in new skills, buy the equipment you need, or build up an emergency fund. Money that is spent will help your family for years to come if you are spending it in the right way.
Smart financial decisions made easy with MoneyLion
Finding out that there will not be another stimulus check can be upsetting, but there are alternatives, like the Child Tax Payments. You could receive anywhere from $3,000 to $3,600 per child in the next year per child! This is a great option for struggling families.
If you were expecting another stimulus payment and feel let down, we can help! With MoneyLion’s new Safety Net feature, you can view all your available MoneyLion funds to help cover life’s surprises with the help of cash advances, money monitoring, early payday, and more!