The IRS has already put out $15 billion worth of stimulus check payments to around 35 million families throughout the country. Interestingly, these stimulus payments differ heavily from the previous stimulus payments- they are quite a pre-payment of the expanded Child Tax Credit.
Most of the families that qualify for the first half of the payment- an expanded form leading to $3,600 per child tax credit- will be receiving it by the end of the year. The IRS has already mentioned that almost 86% of the first payments have been delivered to multiple bank accounts. As it stands, this money is only for those families that have children. Nonetheless, it is still quite a lot of money for those who don’t have kids.
The Recent Developments In The Stimulus Check Payments
As Congress and the IRS have notified, the tax credit system is definitely going to reduce what you owe to the IRS in 2021 in the event that you actually have payments that are related to the care of a dependent. In the event that you care for a child or another dependent, you would find yourself claiming almost $8000 in expenses.
In the event that you find yourself caring for more than one child or dependent, you have a provision of claiming $16,000 in stimulus check payments.
The way to claim this stimulus check payment is quite easy. You can easily claim the payments when you end up filing for your 2021 tax return. If you end up spending $16,000 caring for your dependents- you would end up owing $4,000 to the IRS where the tax credit does eliminate the debt.
The Earned Income Tax Credit has also been around for quite a while, but this tax credit seems to be temporarily expanded recently. This credit targets mostly the lower and the middle-income earners of the society under the new stimulus check rules.