Some people in the United States of America can look forward to receiving a payout of up to $1,400 on top of their tax return in 2022, but they must first meet specific criteria. To be eligible for such a payout, American citizens must be either the parents of a child born in 2021 or have a new dependent.
This $1,400 stimulus check is a huge deal, and we’ll go over all you need to know to figure out if you’ll be able to claim it in 2022 and how to do so.
Why Is There another Check Happening?
All of these new economic measures are part of the new American Rescue Plan, which provides individuals and their dependent children with $1,400 payments.
Another Stimulus Check?
Although the majority of people have already received their full reward, those who had qualified children in 2021 can claim the Recovery Rebate Credit on their next tax return.
Economic Impact Payments, sometimes known as stimulus checks, were distributed in 2021 as part of the Recovery Rebate Credit advance payments.
If you did not get the entire amount due by December 31, you can claim the remaining funds when you do your taxes in 2022.
Because the 2021 Economic Impact Payments were computed using a person’s 2020 or 2019 tax return, any qualified dependents who joined the family in 2021 will be excluded from the computation and payout.
Will These Checks Be Issued In Every State?
Every State will receive a federal budget to administer these funds, but it will be up to the administration of each State to decide how to spend these funds and which benefits will be included in the plan.
Recovery Rebate Credit Eligibility
You can claim the child on your 2021 tax return, which will be completed in 2022 if you qualify for the Recovery Rebate Credit.
Those who qualify for an additional payment through the American Rescue Plan will have the credit applied to their refund in 2021.
As per Marca, dependents must be under the age of 19 at the end of the year, unless they are students, or they can be any age but permanently disabled. Furthermore, the dependent must be a child, brother, sister, foster kid, stepbrother, stepsister, half-brother or half-sister, or descendant of any of them.
However, there are some income requirements to get the Recovery Rebate Credit payment, as taxpayers can receive the entire amount if their adjusted gross income is under $75,000 or if they are married and filing jointly and have an income of $150,000.
IRS Plus-Up Payments
Plus-up payments are additional stimulus checks given to people who received one based on their 2019 tax return or information in the Social Security Administration’s system.
If you are a taxpayer in the USA, you may be eligible for a plus-up payment if your income in 2020 was lower than it was in 2019.