Many Americans are in for some additional payments surrounding the American Rescue Plan Act which are being distributed all over America. The estimated cost of a single payment received by an American is about $1400. The payments are slated to start by the 15th of next month. The American government is unlikely to run any other additional stimulus checks around the country. The Child Tax Credit also plays an important role in the stimulus checks which is also a fragment of the ARPA. The changes are supposed to occur from the tax year 2021 itself.
The Child Tax Credit has been proposed by President Biden to be extended to the year 2025 since it is only for a year. The CTC claiming families will receive an amount of $3000 for a child aged between 6 and 17. Under the age of 6, the amount has been increased to $3600. Previously, the CTC amount was close to $2000 per child qualifying below the age group of 17.
The IRS further states that Americans with a higher income of about $150000 might just file a shared return if they happen to be married. Widows or widowers who are the heads of the house and eligible for qualifying the stimulus checks with an income of about $112500 will also be a beneficiary of the same. The standard amount of $75000 is to be maintained for all the other taxpayers.
The Official Stance On The Stimulus Check
The IRS urged people to document their tax returns for the economic year 2020 as quickly as possible, especially the ones who have children. This will go a step further to confirm that they are eligible for CTC. The tax returns that are filed electronically through various modes will be considered along with the direct deposit of funds to their bank accounts. This would also ensure that your refunds are faster and also keeps the possibility of the advance payments of the CTC.
