Surprise stimulus checks could come after Thanksgiving
It’s hard to believe there are only five weeks left until the end of 2021. Within that time, we’ll have celebrated Christmas — and many people will have gotten at least one more stimulus check, too. In many cases more than one.
Some of the new checks and payments will come as a surprise. Others we know of course and families are already expecting. Like the sixth and final tax cut for children coming December 15th. In this post, we’ll run through some of what’s to come – the surprises and everything else.
Surprise stimulus checks on the go
For some people, the December stimulus check may be: surprisingly outsized. That’s because not every tax check for kids coming next month is going to be equal.
Most recipients get the same amount as the last five checks. So a few hundred dollars in total per eligible child. Meanwhile, some families have only now started to get these checks. If that’s you, and if you applied before November 15, the IRS will send you some sort of catch-up check in December.
What families needed six checks for comes in December as a lump sum payment. And the most important thing to remember is that yours still only represents an advance for half of the total amount of the child tax credit you qualify for. Everyone will get the second half as a tax credit next year when they file their federal income taxes.
Stimulus Controls in Certain States
The post-Thanksgiving wave of stimulus checks like this isn’t just coming from the federal government, either.
States like Maine send checks to residents. In that state, a one-time payment worth $285 goes to more than 500,000 residents. Those checks are going out in waves until the end of the year.
The same goes for California, where the Golden State Stimulus II pays residents a whopping $1,100.
It’s not just checks – families can get tax credits too
Meanwhile, there is another stimulus benefit available to take advantage of that many people may not know about. It is the Tax credit for children and dependent care.
This is another important tax benefit for working families. Essentially, for 2021, parents are eligible to claim as much as 50% of childcare costs up to $8,000. For a maximum of two children. But it’s not just for expenses related to children. As the name implies, the expense can also come from a spouse, parent, or other dependent you care for who cannot provide for themselves.
This is what the IRS says about the. “The child and survivors’ care tax credit is a credit that is allowed on a percentage of the work-related costs that a taxpayer incurs for the care of eligible persons to enable the taxpayer to work or seek employment. “
according to the numbers
Kiplinger’s has a good explanation of some of the highlights. For starters, any family with adjusted gross income of up to $125,000 can get this tax credit. It covers 50% of their qualifying costs. However, that number drops to 20% for incomes between $125,001 and $183,001.
You can visit this IRS portal to answer all your most important questions about this tax relief. To claim it for 2021, the IRS requires you to complete Form 2441. Also, you (and your spouse, if applicable) must have “earned income” from a job.
Married couples must file a joint tax return to obtain the credit. Potential recipients must also provide details such as the name and tax ID of the person who provided the care.