Is Another Stimulus Check On The Way?

Even though we are deep into the coronavirus pandemic, many families are still struggling to pay their bills, buy food, and simply stay afloat.

One thing that helped many of us stay afloat was the disbursement of stimulus checks from the government for ourselves and our children. Those are long gone, though, and many wonder if there are any more stimulus checks in the works. Here’s what we know so far.

You May Be Eligible For A $1,400 Stimulus Check

Unlike past stimulus check payments sent out to many families, this next round is more limited and a bit harder to understand.

The government announced that you could receive a 2022 stimulus check for $1,400 if you are a parent of one of the following:

• Newborn child
• Foster child
• Adopted child

What’s the catch? The child must have been born or become your dependent in 2021 or 2022.

This fourth round of stimulus checks (aka Economic Impact Payments) comes from the American Rescue Plan. It is officially an advance payment of the Recovery Rebate Credit. If you didn’t receive a full stimulus payment by December 31, you can submit your 2021 taxes, claim your new dependent, and get whatever’s missing through the Recovery Rebate Credit.

It’s worth noting that even if you don’t typically file taxes, you will need to file that 2021 return to get the Recovery Rebate Credit. If you cannot afford a tax preparer or accountant, you could use the Free File program from the IRS as long as your adjusted gross income is less than $73,000.

As for how the Recovery Rebate Credit can benefit you, there are two options:

1. It can reduce the 2021 taxes you may owe.
2. It can result in a bigger tax refund and more cash in your pocket once you file.

There are some requirements to claim a new dependent on your taxes so you can qualify for this additional stimulus. The dependent needs to be:

• Younger than 19 at the end of the year (unless they’re a student).
• Permanently disabled (can be any age).

Beyond the age requirement, the dependent must also be one of the following:

• Child
• Foster child
• Brother
• Sister
• Stepbrother
• Stepsister
• Half-brother
• Half-sister
• Descendent of any of the above

There is also an income requirement to qualify for the Recovery Rebate Credit payment. You can receive the full amount if your adjusted gross income is less than $75,000. If married and filing jointly, your adjusted gross income must be less than $150,000.

Since this new stimulus is much more confusing than those past payments that went out to the masses, your best bet is to visit this page from the IRS to learn more. If you are still unsure whether you may qualify, give them a call so you can file your return and get that extra cash.