Who isn’t ready for extra cash at any time, right?
Biden signed a new bill today, passed by Congress, bringing the 3rd stimulus payment to US residents and citizens.
The highest stimulus yet, at $1,400 will consist of direct deposits to every U.S. resident and citizen, plus dependents and minors.
The Stimulus Checks
- The stimulus payment will be based on your 2019 tax returns. If you’ve already filed 2020 taxes, it will be based on your 2020 tax returns (if you earned more in 2020 than in 2019 then hold off from filing your tax yet. If you earned less in 2020 than in 2019 then file your 2020 tax return immediately).
- On up to $75,000 income earned (or $150,000 for married couples), you will receive the full $1,400. Once your income is over $75,000, the payment amount will go down. Once your income is over $80,000 (or $160,000 for married couples), you will no longer be eligible for the stimulus.
- You will receive an additional $1,400 for each dependent who is legally dependent on you (as a provider, parent etc), children included.
You can calculate how much your check will be with this online calculator, Third Stimulus Check Calculator.
Additional Child Credits
Child credit will be increased.
Each child within the age range of 0 through 5, will receive $3,600 in payments. Each child within the age range of 6 through 17 will receive $3,000 in payments.
The child payments will possibly be received in monthly payments (not confirmed), beginning in July. You may be able to choose to receive $300/$250 in monthly checks or opt-out and rather receive it as a one lump sum payment at the end of the year. Although half of the total payment may possibly be received in monthly payments, the other half will still be given tax season.
The money will be fully refundable which makes it available to parents who don’t pay any taxes.
If you give birth throughout 2021, you will receive the full credit for that child as well.
Increased Childcare Benefits, Tax Credits, Food Stamps, Unemployment, and Business Funding
- While the stimulus bill is passed, so will an increase in childcare benefit be. Parents will be eligible for 50% tax credit for childcare expenses, max $4,000.
- Also, an income tax credit for adults without children will be raised in 2021 to $1,502, from the usual $543.
- The 15% food stamp increase which was set to expire in June has been extended through September.
- Through September (the 6th), $300 will be added weekly to the unemployment benefit.
- You will not have to pay taxes on the first $10,200 you received for unemployment in 2020
- Lastly, the Employment Retention Tax Credit is extended through December.
Thank you, Pinchus Schiff – The Payroll Guy for helping us put together this post.