Qualifying American households could receive up to $5,000 on their tax refund this year.
The Stimulus Check and Child Tax Credit Payments in 2022
Families who welcomed a new baby into their family last year could also be eligible for the $5,000 on their tax refund this year. Hence, here is how to find out if you are eligible and how to apply for the extra stimulus. The $5,000 stimulus check and child tax credit payments in 2022 are part of the two tax credits in the $1.9trillion assistance package by President Joe Biden signed into law in 2021, according to a published report in The U.S Sun.
Tax Institute director Andy Phillips at H&R Block told Local 12 News that parents who meet eligibility requirements would receive $3,600, thanks to an expanded child tax credit plus a $1,400 stimulus check for their dependents. Moreover, if a baby was born by the end of 2021, the parents can be eligible for both child tax credit and stimulus check.
Parents who file their taxes this year can claim their newborn as a dependent. Many already received the $1,400 stimulus check. But, because the checks were an advance of a 2021 tax credit, eligible parents can bank the payment for their newborn this year Tax season begins on January 24. However, to ensure that their return is accurate, parents are strongly advised to keep the IRS letter because it contained important information on the child tax credit.
Stimulus Payment Will Still Be Available For Families Who Did Not File Tax in 2021
Meanwhile, certain low-income families could be eligible for a payment of up to $1,400 in the early months of 2022. Furthermore, for those who filed to file their taxes in 2021 economic impact payments may still be available to file taxes. In addition, some eligible households might be eligible for “plus-up” stimulus payments and can earn income credit.
Taxpayers who did not file a tax return in recent years, but plans to do so in 2021, are also able to claim the $1,400 economic impact payments. That group of eligible taxpayers also includes those who had a dependent child in 2021, changing their income level, but who have yet to file.
The payment should be paid directly to the taxpayer’s preferred method in receiving their refund, either check by mail or direct deposit. The earned income tax credit is another incentive to file a tax return. The earned income tax credit is available to low-income households as well as low-income workers without children. The credit is equivalent to a fixed percentage of income from the first dollar until the credit reaches its maximum.