As 2021 comes to a close, tax season approaches. That’s good news for some of you, because a fourth economic stimulus check may be on the way. This round of checks will only go out to certain individuals, so how do you know if you’re on the list?
You’ll need to meet some requirements to qualify for the $1,400 stimulus check in addition to your tax refund. The new stimulus check is for parents who had a child born during 2021 or those who have a new dependent.
This is because the 2021 Economic Impact Payments were based on 2020 and 2019 tax returns. This didn’t include dependents added in 2021. Since the impacts of COVID have continued throughout 2021, a fourth round of checks is due. This is part of the American Rescue Plan, which aims to help families with children.
If you fall into this category you may receive the check before December 31st, 2021. If you’re eligible but don’t receive the check, you’ll need to apply for the Recovery Rebate Credit. You can apply when you file your 2021 taxes. If eligible, you’ll receive the money along with your tax return.
Is the fourth stimulus check available in every state?
Every state will be issued a budget by the federal government to cover the distribution of the checks. Each State Administration will be in charge of deciding how to spend the funds they receive. That means different benefits may be available from state to state.
There are a few other requirements you should be aware of before applying for the Recovery Rebate Credit. The dependent you are trying to receive funds for must be under the age of 19 at the end of the year. Exceptions to this include students over the age of 19 or individuals who are permanently disabled.
Additionally, the dependent must be your child (including foster children, step children, and half-siblings are included), or a descendent of anyone falling into those categories. Examples of individuals who qualify as descendants include grandchildren, nieces, and nephews.
There are also a few income requirements that affect eligibility. If you’re filing as single you will need to make under $75,000 whereas if you’re filing as married or joint, you must make under $150,000.
If you fit all of these requirements, make sure to apply for the Recovery Rebate Credit when filing your 2021 taxes.
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