Although a fourth stimulus check is not officially planned, some Americans will continue to benefit from other aspects of President Biden’s American Rescue Plan well into 2022.Most Americans are aware of the Expanded Child Tax Credits, which have been providing eligible parents with direct monthly payments of $300 per child under the age of six and $250 per child ages six to seventeen since July.
The same payments will see an additional sum added to 2021 tax refunds, and the President’s Build Back Better plan includes a one-year extension of the credit. However, some people may be unaware of another aspect of the President’s original stimulus package—an increase in Earned Income Tax Credits. Earned Income Tax Credits, which are available to workers with low-to-moderate incomes who do not have children, are not new; they have been in place since 1975.
Those who qualify for them when filing their taxes in 2021, on the other hand, will be eligible for the largest amount of money yet—a $1,502 refund. This is an increase from the previous maximum of $543, thanks to a temporary increase in the rate for where the credits phase in from 7.65 percent to 15.3 percent.
According to Internal Revenue Service tables that reveal the amounts for each tax year, the income threshold has also increased. The figures have risen year after year, but this is the largest increase. Those who claimed it in 2016 qualified with an investment income limit of $3,400 or less and received a maximum of $506 if they had no qualifying children, while those who claimed it in 2017 qualified with an investment income limit of $3,450 and received $510 if they did not have qualifying children. In 2018, 2019, and 2020, those figures were $3,500/$519, $3,600/$529, and $3,650/$538.
The Investment income limit for 2021, where the $1,502 credit can be claimed, is $10,000 or less.Of course, these workers aren’t the only ones who will benefit in 2022; those receiving Expanded Child Tax Credits will also be eligible for additional funds in 2022.
Parents who are already receiving the monthly advanced Child Tax Credit will see an additional $1,800 minimum on their 2021 tax returns, while those who have yet to receive the payments or chose to defer them could see a total of $3,600.
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