The US citizens will receive stimulus checks worth $1,400 in 2022. The individuals need to fulfill the criteria to receive the payments. The scheme is a part of the American Rescue Plan; it will issue boost the finance of the families.
Marca reports that parents who welcomed a new child in 2021 can claim the Recovery Rebate Credit. The stimulus payments are also known as the Economic Impact Payments. The government introduced the payments to assist low-income families during the pandemic.
Those Who Missed Out Last Year Can Claim The Payments
The individuals who did get the entire amount by the end of 2021 can claim the remaining amount while filing their tax returns in 2022. The IRS calculates the Economic Impact Payments based on the 2019 or 2020 tax returns. The parents who had an additional child in 2021 need to update the information to receive the other benefits.
The States Will Decide Upon The Distribution Of Funds
The federal government issued funds to every state to distribute among the citizens. However, the states are to decide upon the pattern of expenditure of those funds. The states can spend the funds at the time of need and based on the economic conditions of their residents. The tax return information determines the eligibility of an individual.
The citizens eligible for the American Rescue Plan will get the refunds of 2021 this year. The age limit for qualification is 19; the dependents need to be a relative of the eligible individual. The individuals should have an annual income lower than the threshold limit set for the Recovery Rebate Credit. Single individuals earning less than $75,000 and married couples making below $150,000 annually will receive the benefits.
The payments are a form of Plus-Up payments issued to the recipients of the 2019 stimulus checks. The Social Security Administration records the tax return information of individuals.
The citizens who earned less in 2020 compared to 2019 will automatically qualify for the Plus-Up payments. The citizens need to check with the local government authorities to receive detailed information on the eligibility and the pattern of the payments. The states and the federal government will likely introduce several benefits schemes in the coming months.