The next stimulus is here and payment should start being received on July 15th for those who qualify.
This stimulus is only for those with children. This is the child tax stimulus. In the past, this was just given as a tax credit, lowing the taxes of families and single parents. Now, they are giving the money up front. While this may help, it will also come as a sticker shock to many next tax season.
The stimulus will come as monthly checks. Each child under the age of 6 will qualify for $3,600 per year, or $300 monthly checks. Children aged 6 to 17 will be eligible for $3,000 total, or $250 monthly checks. For 2021 the government is only sending out half the tax credit as a stimulus.
In order for the parents to qualify for this credit/stimulus, single filers must make less than $75k in order to get the full payment, but they do qualify for partial payments if they make under $90k. For parents filing jointly the numbers raise to $150k to still get the full payments, and a reduced payment between $150k and 170k.
Now, for those earning more than those numbers, they will still qualify for the old tax credit which is $2k per child, but they will not get monthly payments, just the tax credit which can be applied at tax time as usual.
These numbers will be based on your 2020 tax returns and assume you will make the same amount of money going forward. If you qualified in 2020 but know you will not in 2021, be ready to pay that back on your tax returns. It’s unclear at this time what will happen, but most likely that will be the case we assume.