Got Kids? You’ll Get ANOTHER Stimulus Check This Summer
I guess I’ll be missing out on this check – no kids here. If you got kids, you’ll get another stimulus check this summer. Actually, you’ll get six. It’s a child tax credit.
Along with the $1400 checks that were sent out to most people in March there was another stimulus check in that $1.9 Trillion COVID Relief Bill. There’s a $3,000 child tax credit that will be shipped in July. Here’s what it is:
According to CNBC, families will receive a $3,000 benefit per child ages 6 to 17 and $3,600 per child under the age of 6. This is one time and only for the 2021 tax year. There is of course, limitations on who is eligible. It’s only for people with kids who have an adjusted gross income of $75,000 as an individual or $150,00 AGI for couples filing jointly. The benefit will diminish for those who make more than that, and cease for individuals AGI at $95,000 and couples earning $170,000 filing jointly.
If you make more than that, you are still eligible for the already in place tax credit of $2,000 per child under age 17 for families making less than $200,000 annually, or $400,000 for married couples.
The new per-kid stimulus will be sent out on a monthly basis beginning in July, and you’ll get the other six months of stimulus in the form of a tax refund when you file next year. There is no limit to the number of children you can use on this tax credit so if you have a lot of kids you’re in line for some serious coin.
What if I’m just slightly over the $75,000/$150,000 threshold?
If your 2020 tax returns put you just over the threshold I’m willing to bet the tax code will be written for 2021 to allow you to get the credit retroactively. That’s how it worked for last year’s stimulus. If you’re close, but just over that number, take steps to reduce your 2021 AGI so you can get that cash. The simplest way is to max out your IRA/401K. If you own a business and have a decent accountant you already know of ways to reduce your AGI. Buying equipment and taking a Section 179 deduction is one way that I’ve used. Kids are expensive. If there’s sweet sweet free government money out there, just in time for a summer vacation – go get it.