I have some good news for all you families struggling financially right now!!
We are about to get a whole new round of stimulus checks, and they are coming sooner than you might think.
Now, we’ve already been blessed with 3 rounds of stimulus money from the government, but there’s more on the way.
Get out your big red pen — or purple, in my case — and circle July 15th in your planner.
This is the date that this all new round of stimulus checks will start hitting bank accounts.
Now, how, you might be asking, will this round of checks be different than what we have received before.
Well, the BIG answer is — this money will show up in your bank account MONTHLY — on or about the 15th of the month — through the end of the year.
These checks — or direct deposits, if you will — are for families — part of the expanded Child Federal Tax Credit that Biden signed back in March.
What the heck does that mean?
The good news is that families can get up to $3600 PER CHILD (under the age of 6) over the course of the remainder of the year.
For kids who are 6 years old to 17 years old, the amount for the year could be as much as $3000.
Now, before you start jumping for joy, there ARE some caveats to this new money — some important points that the IRS will consider before dishing out this money.
An individual parent must make less than $75K per year — or $150K per family — to get this money.
The money will be split over a 6-month period, so you will get between $200 and $300 per child each month.
That’s still a hefty chunk of change each month, especially for those who struggle being able to afford new school close or even holiday gifts to put under the tree.
To receive the credit, families with children must file a 2020 tax return, according to Rettig. If a family doesn’t file a 2020 return, the agency will not have the information it needs to deliver the credit.CNBC
Now, as long as you have filed that tax return for 2020, you shouldn’t have to do anything additional to receive the stimulus money — it will automatically be paid out.
Listen up, because this part is important!
You can opt out of these monthly payments, if you so wish.
BUT WHY, you ask, WOULD YOU WANT TO DO THAT??
When you file your taxes for 2021, you can choose to get your expanded Child Federal Tax Credit in one lump sum.
That means, you would forgo the monthly payments for the end of the year, and just claim the entire amount on your taxes next year.
There are several reasons that you may want to opt out — for now — of the monthly stimulus money.
- You know you are going to have a life change this year (maybe a new baby), and you don’t want to go through the trouble of filing that immediately with the IRS website.
- You want to offset money you think you will OWE on next year’s taxes.
Both of these are totally valid reasons for opting out of the monthly payments.
BUT, be assured, you can totally claim the Child Tax Credit on your taxes next year, and you will STILL get the money that is owed to you.
If you feel you might want to opt out, just head on over to the IRS.gov website — they should be posting a link soon.
Otherwise, bring on that stimulus money, right?!?