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Surprise stimulus checks could arrive after Thanksgiving

By on November 25, 2021 0

It’s hard to believe that there are only five weeks left until the end of 2021. During that time, we’ll have celebrated Christmas – and many people will also have received at least one more stimulus check. In many cases, more than one.

Some of the new checks and payments will come as a surprise. Others, of course, that we know and that families are already waiting for. As the sixth and final child tax credit coming on December 15th. In this article, we’ll go over some of what’s to come – surprises and everything in between.

Surprise stimulus checks in progress

A close-up view of a stimulus control is displayed. Image Source: Andy Dean / Adobe

For some people, December’s stimulus check could be surprisingly disproportionate. This is because all child tax credit checks coming next month will not be created equal.

Most recipients will receive the same amount as in the last five checks. Totaling a few hundred dollars per eligible child, in other words. Meanwhile, some families have just moved from begin to get those checks. If that’s you, and if you signed up before November 15th, the IRS will send you some sort of catch-up check in December.

What took six checks for families to receive will be a lump sum payment in December. And the important thing to remember is that yours will always only be a down payment for half of the total child tax credit amount you are entitled to. Everyone will get the second half of next year as a tax credit when they file their federal income taxes.

Stimulation controls in certain states

The wave of stimulus checks like this after Thanksgiving 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 over 500,000 residents. These checks are issued in waves until the end of the year.

Ditto in California, where the Golden State Stimulus II pays residents up to $ 1,100.

It’s not just about checks, families can get tax credits too

Meanwhile, there is another stimulus perk available to take advantage of what a lot of people may not be familiar with. This is the tax credit for child care and dependents.

This is another important tax benefit for working families. Essentially, parents for 2021 are entitled to claim up to 50% of child care expenses up to a maximum of $ 8,000. For, at most, two children. But it’s not just for child-related expenses. As the name suggests, expenses can also come from a spouse, parent, or other dependent you are caring for who cannot care for themselves.

Here’s what the IRS says about that. The Child Care and Dependents Tax Credit is a credit for a percentage of work-related expenses that a taxpayer incurs for the care of eligible persons to enable the taxpayer to work or seek work. “

By the numbers

by Kiplinger has a good explanation of some of the highlights. To begin with, each family whose adjusted gross income does not exceed $ 125,000 can benefit from this tax credit. It will cover 50% of their eligible expenses. However, that number drops to 20% for earnings between $ 125,001 and $ 183,001.

You can visit this IRS portal for answers to all your key questions about this tax credit. To claim it for 2021, according to the IRS, you will need to complete Form 2441. Additionally, you (and your spouse, if applicable) must have “earned income” from employment.

Married couples must file a joint tax return to obtain the credit. Potential beneficiaries are also required to provide details such as the name and tax identification number of the person providing the care.

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