Next year, some cash-strapped Americans might receive an additional stimulus check of up to $1,400. The payment was made as part of President Joe Biden's American Rescue Plan, which was approved by Congress in March.
According to a Democratic aide, they would receive the funds when their tax returns are filed next year. Single taxpayers earning less than $75,000 were eligible for a stimulus check of up to $1,400 under Biden's COVID-19 relief plan.
There's a $1,400 stimulus check waiting in 2022
Couples filing joint tax returns were required to have a combined income of $150,000. Taxpayers earning more than that will have their payments decreased until they are phased out altogether for individuals earning more than $80,000.
As part of the American Rescue Plan, Biden increased the Child Tax Credit from $2,000 to $3,600. Families get monthly benefits of up to $300 per child under the age of six and $250 for dependents aged six to seventeen.
However, the amount depends on the age of your children and how late you applied for advance tax credits. Families that have recently applied for advance Child Tax Credits may get $600 each month, as per The Sun.
Parents will get up to $1,800 this year before filing their tax returns in 2022 to obtain the remaining amount. Payments for the Child Tax Credit are based on past tax returns although the program is available to low-income taxpayers.
If you make less than $12,200 per year, you don't have to submit a tax return. It is possible to opt out of advance Child Tax Credit payments, and it is recommended that parents who are concerned about owing money to the IRS to do so.
Senior citizens may receive stimulus payments
A senior citizens' advocacy group is pushing Congress to approve $1,400 stimulus payments for Social Security recipients. While these Americans may be in line for the greatest cost-of-living adjustment in 40 years, experts warn that the amount they'll receive will likely fall short of inflation, putting them in a higher tax band.
Based on consumer pricing statistics through August, the Senior Citizens League (TSCL) predicted last month that the 2022 cost-of-living adjustment (COLA), which will be published in October, will be 6 percent to 6.1 percent. If the 6.1 percent projection holds true once September is factored in, the Social Security COLA will be the biggest since 1982.
According to AARP, the average monthly Social Security payment is expected to reach $1,543 in 2021. An individual getting that amount this year would see their monthly payment climb by nearly $93 to $1,635 in 2022, thanks to a 6.1 percent COLA increase.
While the additional money each month might undoubtedly help, the investing website The Motley Fool warns that inflation will likely wipe away most or all of the boost.
Last week, league chairman Rick Delaney wrote to members of Congress, stating that the organization has heard from tens of thousands of seniors "who have started eating just one meal a day, who have exhausted their retirement savings, who have started cutting their pills in half because they can't afford their prescription medicines" due to inflation.
TSCL is also worried that the COLA increase may force certain seniors into a higher tax band, resulting in increased tax rates on their income and Medicare Part B premium surcharges. According to the group, the solution may be a one-time stimulus check.