03/02/2021 by californiacaregivers
Everything in the stimulus package that parents and the elderly should know about
A $1,400 check isn't the only thing a new stimulus bill is likely to include. Here are the proposed tax breaks and credits that could bring your family more money this year.
The $1.9 trillion COVID-19 relief bill is on track to be picked up in the Senate this week. The third stimulus check of up to $1,400 per person may be its marquee feature, but that's not the only money your family may be eligible to receive. The American Rescue Plan Act of 2021 -- which could be passed into law in the next few weeks -- also seeks to expand the Child Tax Credit (which might be amended), support affordable early child care, provide money for aging and disability services, and raise the maximum earned income tax credit for adults, including older workers.
While these terms are in the current version of the bill, it's possible lawmakers could change them before it is finalized. President Joe Biden is also expected to expand child and elder care in a future bill, according to The Washington Post.
Below, we've got everything we know now about what the plan includes to benefit parents, children and older adults, and how your family could see thousands of dollars in tax benefits this year. (We've broken out all the ways your family could get more stimulus check money time time around, too, and here's how to calculate your stimulus money.)
I have children. How much extra money could my family receive, besides the third stimulus check?
The American Rescue Plan includes several provisions aimed at lowering child poverty rates in the US, which could bring some families an extra infusion of cash this year. These include:
Stimulus checks for dependents. Under the current bill, dependents of any age (including children, young adults or older adult relatives) will be eligible for up to $1,400 each in stimulus payments. This money won't come in the form of their "own" check, however, but will instead be added on to the household's total. Calculate your estimated share here.
Expansion of the Child Tax Credit. Parents can usually claim a CTC of up to $2,000 on their taxes for every child under age 17. The current proposal in the American Rescue Plan states that families with children aged 17 and under would receive a credit of $3,000, while those with children under the age of 6 would receive a $3,600 credit. It also makes the credit fully refundable, removing both the dollar cap and earnings limit that currently prevents many low-income families with children from receiving the full credit, according to the Center on Budget and Policy Priorities. (Read more details about the Child Tax Credit changes here.) However, details like periodic rather than monthly payouts, are still up in the air.
Expanded tax credits for child care. To make child care more affordable for families, the plan provides a child-care tax credit for kids under age 13 -- a total of up to $4,000 for one child, or $8,000 for two or more children. The credit would be refundable, and available to families making less than $125,000 per year. Those making between $125,000 and $400,000 would receive a partial credit (find out what your adjusted gross income is here). The plan also calls on Congress to provide funding to keep child-care centers open, and improve wages and benefits for child-care workers.
To view the full article, click here: https://www.cnet.com/personal-finance/stimulus-money-and-tax-breaks-how-parents-and-older-adults-could-get-extra-cash/