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Tuesday, January 31, 2023

Fourth Stimulus Check: You Should Be Getting More Payments Right In 2021

Even though more Democratic lawmakers have put up letters requesting President Biden to go in for a fourth stimulus check, there has been little progress on that front. The White House is preoccupied with the infrastructure bill and it could be difficult to include a direct stimulus payment into that bill.

Moreover, we aren’t sure that a fourth stimulus check will go through the houses, with even some Democratic lawmakers not so sure, in a house that precariously balanced right down the middle. And the Republicans are downright opposed to it, they even wanted to stop the third payment. But there’s hope.

Need For Another Stimulus Check-In Whatever Form

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There are bills to be paid, and that has been a real pain with the economic downturn showing little signs of receding. Unemployment remains high at 6.1% against the 3.5% pre-pandemic levels.

But there is federal money to be had if you know where to look for it. And it won’t need another piece of legislation for you to get it.

In less than a month, starting July 15, the Child Tax Rebate payments are set to start. The IRS will begin sending out the first part of the Child Tax Credit payments. They will be paid in 6 equal installments between July and December 2021. And the rest of 50% will either be adjusted against your taxes or should come to you as a refund check. But that will have to wait for the next tax season in 2022.

The Child Tax Credit: A Stimulus Check For Families With Children

Stimulus check
Stimulus check
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The Child Tax Credit will partially be a monthly payment paid through the New Federal Enhance Child Tax Credit, with the first payment going out on July 15. This payment is part of the American Rescue Plan that was signed by President Biden back in March 2021.

Households with children will get an enhanced Child Tax Credit of up to $3,600 per child over around one year. One-half of this payment will go out in 6 monthly installments of $300 each.

The maximum amount goes out to children below 6. For children between 6 and 17, the total amount per child is $3,000. They will get a monthly check of $250.

The IRS decided to go in for monthly checks instead of sending out all these payments at a go. That will allow families some immediate breather in these troubled times.

So if you have, say, two kids aged 3 and 5, and a third aged 10, you could end up getting as much as $850 a month. And the total adds up to $9,200 in all. And that is way more generous than the stimulus check.

Qualifying For The Child Tax Credit

Like the stimulus check, the CTC payments are also tied to the income of their parents. You get the full credit if you make less than $75,000 a year as a single parent.

For couples with kids who file separately, the full credit is available when your earnings are $150,000  or less.

The full tax credit will phase out if individual earnings touch $95,000 or go above. For couples filing jointly, the amount is $150,000 and more.

But be assured that even if you have crossed the above income figures, you still get the federal check of $2,000. But then your adjusted gross income should not be more than $200,000. All income figures are calculated as per the AGI figures. But this money will not come as an equal installment. Instead, you will get an adjustment against your 2021 income tax returns to be filed the next year.

You need to remember that this amount is an advance on your 2021 tax returns and could have implications when you file your returns next year.

Stimulus Checks For Homeowners

Stimulus check
Stimulus check

Making house payments has been nothing short of a nightmare for people who had it bad during the pandemic. Though there have been many rock-bottom mortgage rates, people are still struggling.

But there is just the right solution for people having problems staying in line with their mortgage payments. You don’t have to worry about foreclosure or delinquency thanks to the Homeowner Assistance Fund. Under the pandemic rescue package, a $10B package has been created for all states, Puerto Rico, and the Dist. of Columbia.

To get a part of that fund, you will need to do 2 things; show that you are financially stressed and your earnings are within 150% of the median income of your area. Your pending loan should be below $548,250 though.

There’s Money There Even For Renters

There has also been an allocation of $46.6B as emergency support for tenants unable to pay their rents. This amount was signed under the second and third relief bills in December 2020 and March 2021.

This amount, which the National Low Income Housing Coalition found ‘unprecedented’, is for tenants struggling with their utility bills and their rent as a result of the crisis. You will have to provide proof of that, and also that you might lose your home soon if you do not get immediate relief.

You get generous assistance for 18 months if you qualify. That amount is to cover both your outstanding and ongoing rent payments. The exact amount will vary, in some states, it is $4,600 every month. some states have gone in for a lump sum payment of $25,000 max.

Latest Developments On The Fourth Stimulus Check

Though there have been more proof that the stimulus checks had a positive effect on the conditions of millions of Americans during the pandemic, there seems to be little development at present on the front. There has been a marked decline in food shortage and financial instability thanks to the stimulus checks, but talks on the fourth round of direct relief are still at a nascent stage.

Getting Relief In Other Ways

You could still make the most of the situation either by getting git through other means or saving in a situation where it is possible.

For instance, most Americans have gone in for hefty credit card dues to tide over the immediate crisis during the pandemic. If you are one of them, you should go in for restructuring your loan. Go for a single loan to merge all your debts. That will result in a big drop in interest payments.

Refinance your mortgages if you have done so recently. Interest rates are at an all-time low of 3%. It could save you several hundred a month through refinancing. Car and homeowners insurance are also at an all-time low. Shop around a little and you save quite a bit.

You also need to be prudent in your shopping preference. Use apps that alert you for better bargains each time you shop. All these add up to a lot and could help you ride out these tough times.

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