3rd Stimulus check: impact tax return, child discount and other frequently asked questions – Community News
Stimulus Check

3rd Stimulus check: impact tax return, child discount and other frequently asked questions

CHICAGO (WLS) — At the stroke of a pen, a third round of federal stimulus money is on the way. Your incentive money may arrive in a few days. But there are questions like: How will your 2020 tax return affect your payment? And what about those extra payments for parents?

If you’re one of the 22 million Americans who lost jobs during the pandemic, you can take advantage of the third incentive payment based on your 2020 tax return.

Click here to view our stimulus check calculator to see how much you could qualify for under this plan.

“If you know that 2020 was a difficult year for you and you didn’t make as much money as you did in 2019, then you should definitely file your return now. Preparer Connell Jones. He says the IRS will most likely use the latest income tax documentation on file to determine how much incentive money you are eligible to receive.

You will receive a payment of $1,400 if:
-You are an individual with an adjustable gross income or “AGI” of $75,000 or less
-A householder with an AGI of $112,500 or less
-Or jointly file with an AGI of $150,000 or less.

And if you qualify, your next of kin will also receive the compensation. A family of four can get as much as $5,600.

ALSO SEE | Child Tax Rebate: Some families will receive direct monthly payments of $300 per child starting in July

Jones said his phones are also ringing with questions about a monthly payment for parents who are part of the federal plan.

“Tons of text messages, tons of emails, and tons of phone calls about that question,” he said.

Starting in July, the new exemption will give parents with children under 18 $300 per month per child under 6. It’s $250 per child over 6 years old.

The child tax deduction lasts for one year. Mid July to December. The other half about 2021 taxes.

And the new legislation also increases eligibility.

“Before the child tax credit was cut at 17, so it only included anyone under 17, this bill will include anyone under 18,” Jones said, adding that “those of you who have had a child during the 2020 pandemic, I’d say you guys should go ahead and file your 2020 so you get a child tax credit when those partial payments start in July.”

If you made less money in 2019 than you did in 2020, experts say don’t rush to file your 2020 tax returns.

Some people could already see payments deposited into their accounts this weekend. People with banking information registered with the IRS should see the money as a direct deposit first. Checks and debit cards take a little longer.

For more information, visit the website of the Tax Authorities.

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