Stimulus Update: $2,000 Is Still On The Table, But The $3,600 Payments Are Gone, IRS Says
COVID-19 relief legislation gave much-needed funds to households across the States. The American Rescue Plan Act, in particular, offered $1,400 checks to all qualified adults and dependents and provided parents with even more generous payments from $3,600 for children under 6 years of age up to $3,000 for those aged 6 to 17.
These payments were for the 2021 tax year.
According to a published post by The Ascent, it’s now the end of 2022 and no additional huge payments have been authorized at the federal level to be delivered into American bank accounts this year.
While the $3,600 payments won’t be happening, the IRS has announced in a news release that up to $2,000 could still be on offer to parents who are eligible for some extra financial help.
This credit is less, but still an option, the IRS says.
In a December news release from the IRS that aims to assist people to get ready for tax season, the IRS reported that many people could get less money this year because of the COVID-19-related tax code changes ending.
Among the changes the IRS talked about, one of the major and most important was the end of the expanded Child Tax Credit. It was this expanded credit that entitled parents to between $3,000 and $3,600 per qualified child.
IRS Says – $3,600 Payments Are Gone, But $2000 Is Still On The Table and Ready To Be Claimed
With many American parents having struggles because of the effects of inflation, the end of this credit is a huge one. However, the good news is, the IRS has announced clearly that many parents will still be qualified for payments of up to $2,000 for the 2022 tax year.
These $2,000 payments are an option for families since a Child Tax Credit existed before the COVID-19 relief bills. Eligible parents could receive a credit of up to $2,000 when they file their tax returns each year, with a total of $1,400 which is refundable.
The American Rescue Plan Act changed this existing credit to make it bigger, give some of the money upfronts, and make the entire credit refundable.
The IRS has also said that the end of the expanded credit didn’t alter the existing one, so a payment of up to $2,000 per child can still be received when filing 2022 returns.
Be sure to claim your $2,000 from the IRS
If you are qualified for this credit, you must file a tax return to receive it. The IRS will start accepting returns in late January, so take action to quickly get your money, so you can use it to pad your savings account or cope with the inflation citizens have endured this year.
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