A $3,600 "fourth stimulus" is coming for millions of Americans

Last updated: July 10, 2024
Trending post
Elyssa Duncan
Community SpecialistBullet point
Follow
Community Specialist
Facebook share linkTwitter share link
Like
Comment
Share
A $3,600 "fourth stimulus" is coming for millions of Americans
Jump to section

As part of the $1.9 trillion pandemic relief plan signed into law in March 2021, the IRS is preparing to send out child tax credit payments to eligible families - essentially acting as a fourth stimulus.

The new monthly payments are to be dispersed as part of an extended child tax credit of up to $3,600 per child for working families. Payments will be launched starting July 2021.

What is the child tax credit?

Under the American Rescue Plan, the child tax credit was expanded to help alleviate financial stress for millions of families across the country. Families can expect to receive:

  • $3,600 per child under the age of 6
  • $3,000 per child between ages 6 - 17
  • $500 one-time payment for dependents between ages 18 - 24 if they are enrolled in college full-time

Families who filed a 2020 tax return will receive half the credit in monthly payments, meaning from July through December, receivers will get between $250 - $300 a month for each qualifying child. The remaining half of the credit will be claimed on their 2021 tax returns.

Image source

Who is eligible to receive the extended child tax credit?

Similar to the other payments and tax credits distributed through the American Rescue Plan, there are stipulations around who will receive the assistance.

  • Families must have a qualifying dependent(s) under the age of 18.

  • Taxpayers earning under $75,000 per year ($150,000 per year for married joint fillers) are eligible for the full payment amount.

  • The payment is then reduced by $50 for each $1,000 above the income thresholds.

  • Payments are not eligible for individuals earning $95,000+ or $170,000+ for married couples.

How do I ensure I get the full amount in tax credit?

To guarantee the maximum tax credit, it is important that you check your filing data with the IRS. According to CNBS, advanced payments are based on an IRS estimate from data like marital status, annual income, and the number of qualifying children.

If the data is outdated, it could trigger an under or overpayment of the tax credit. Please note: if your information is incorrect, and an overpayment is issued, it could result in you having to pay back the excess funds. For example, when you file your 2021 federal taxes, and your situation isn't what the IRS has on file and you weren't qualified to as much as you received, you'll have to return the overpayment. According to an expert at the American Institute of Certified Public Accountants, over payment "would reduce your refund or increase your tax payment next April. That’s how it would be paid back.”

Can I opt-out of the monthly child tax credit checks?

Yes, you can choose to opt out of the monthly checks and receive a lump-sum payment in 2022 instead. The IRS intends to open a portal by July 1, 2021, that will allow families to waive the monthly payments.

This portal will also be where you can update your information if circumstances have changed, such as having a child in 2021.

Some reasons you may prefer one large payment versus monthly disbursements are:

  • You’re concerned about a potential overpayment and don’t want to worry about paying that money back.
  • You know your circumstances will change and don’t want to deal with updating your information in the portal.

I don't have any eligible children. What are my options?

If you don't have any eligible dependents to offer you a child tax credit, there are other options to help.

  • The Recovery rebate credit allows people to claim earlier rounds of Economic Impact Payments (EIP) if they did not receive the first two stimulus checks - up to $1,200 and $600 respectively.

  • 211.org has a large range of available resources for the needs such as:

    • Health insurance
    • Medical expenses
    • Unemployment benefits
    • Mortgage, rent, and utilities payment assistance
    • Food assistance
    • Mental health and crisis
More info about government assistance 

What are your thoughts on the expanded child tax credit?

186
697 Comments
Like
Comment
Share

Comments

Show previous comments
Jorge Sanchez
Bullet point
Follow
Assistant Manager at Little Caesars

What if I do got dependents my ex got primary custody my son is 10 now I've had a job most the 10 years my ex never really did but I've never been able to claim my son for myself in any of my taxes as a dependent I got 2 child support cases for my 1 ND only son one in Cali another in arizona I haven't seen my income tax checks in 3 or 4 years cuz arizona intercepted all of them while California child support would send me papers that I'm late on my payments so arizona would take 1000 one year 1300 the next 2000 last year but California suspended my license cuz I owe them 2000 ND some change still my ex has been getting the last 10 years of dependent money even when she wasn't employed ND on welfare I can't even get a credit card in my name cuz of the child support is delinquent amount how come the irs can't catch this bs basically how come I got 2 cases ND neither one knows about there other or even given me the same number

2y
Like
Reply
Greg Johnson
Bullet point
Follow

I would like to know what moron in our Government came.up with the name of children in poverty,if they are it.is because of the parents fault, I raised four.children and never in my life have I ever heard of something so ignorant this includes Joe Manchin being able to block just about everything the people of this country needs, I believe our Government has forgotten who they are working for.

3y
Like
Reply
1
See all replies
ERI kitami
Bullet point
Follow
Cook at Burgerking

how much will the next stimulus be ?

3y
Like
Reply
Jimil Troutman
Bullet point
Follow

Talk to me sis cuz I must money I'm getting when it comes down to the child credit get your mail drop jimilTroutman

3y
Like
Reply
1
Kim Bannister-Nieves
Bullet point
Follow

Why not take care of the elderly living on social security below the poverty level

3y
Like
Reply
3
Kay Renee
Bullet point
Follow

Well maybe u should have paid your child support huh... and the only way the oldest kids don't see that money is because you where on welfare or they where adopted, either way the government and taxpayers took care of your kids while you did what ever you wanted so you didn't deserve to get shit .

3y
Like
Reply
1
Nicole Neal
Bullet point
Follow

I have child support offset STILL on 2 older now grown children. The 2 younger ones are qualified. HOWEVER pandemic, presidential order or coming of christ, my ENTIRE refund is being taken. Single mom. They take 65% of my NET during pandemic!! Never saw or could get verification of what happened to first stimulus. 3rd stimulus wasn't the full amount Never received the promised letter. IF YOU ARE GOING TO TAKE THE BENEFITS FROM ME... APPLY THE DAMN MONEY TO THE CURRENT AMOUNT OWED!!! How did giving that desperately needed help, to the rearranges benefit any damn body?? Scam all the way around. My oldest have never seen a dime!! #Stillbroke # where's my help??

3y
Like
Reply
Casey Rhodes
Bullet point
Follow
Golf Course Maintenance Laborer at Oak Grove Golf Course

It's for Americans who claim children as an independent(s).

3y
Like
Reply
Julie Courtney
Bullet point
Follow

i AM SICK MY HEALTH INSURANCE COMPANY DOES NOT BELIEVE IT I HAVE EPILEPSY AND WAS IN THE HOSPITAL FROM THE 17TH TO THE 31ST AND MO STATE LAW SAYS I CANNOT DRIVE FOR SIX MONTHS AND ON TOP OF IT MY FATHER PASSED AWAY FROM COVID 19. AM UNEMPLOYED AND CANNOT QUALIFY FOR UNEMPLOYMENT AND I JUST CANNOT TAKE IT ANYMORE GRIEF???????PLEASE HELP ME. I NEED SOME HELP. PLEASE POST ME BACK.

3y
Like
Reply
See all replies
Christine Delgado
Bullet point
Follow

I want to get my stimulus check please

3y
Like
Reply
Add