Over a million of those payments were made in the past two weeks, for a total of $ 2.5 billion. The IRS said it made more than 8 million additional payments this year.
The IRS will continue to send “plus-up” payments to those who have recently filed income tax returns on a weekly basis. Over 169 million households have received stimulus funds this year to date.
Who receives a third stimulus payment?
The third round of payments, which was authorized by Congress in March, is worth up to $ 1,400 per person and is expected to reach 85% of households, according to the White House.
Families will receive an additional $ 1,400 per dependent, so that a couple with two children could receive up to $ 5,600. Unlike previous cycles, families will receive additional money for adult dependents over 17.
The total amount goes to people earning less than $ 75,000 in adjusted gross income, heads of households (such as single parents) earning less than $ 112,500, and married couples earning less than $ 150,000. Then the payments gradually disappear as income increases.
People who earn at least $ 80,000 a year in adjusted gross income, heads of households who earn at least $ 120,000, and married couples who earn at least $ 160,000 are completely excluded, regardless of the number of children. that they have.
More money on the way for families with children
The IRS has started sending letters informing more than 36 million families who, based on tax returns, may be eligible for child tax credit payments. Most will not have to do anything to receive the money, which will be based on the information provided on the 2020 or 2019 tax returns. An online portal will be made available later this summer and will allow families update information on their income, number of children and bank accounts.
These payments will technically constitute an advance on a 2021 tax credit. Eligible parents will receive $ 3,600 for each child under 6 and $ 3,000 for each child under 18. Until now, the credit could only reach $ 2,000 per child under 17. At least half of the amount will be paid over the summer and the rest will be added to next year’s tax refund.
The enhanced portion of the credit will be available to single parents whose annual income does not exceed $ 75,000 and joint filers who earn up to $ 150,000 per year.
Congress also made the child tax credit fully refundable so that more low-income families could benefit from it. Previously, if the credit exceeded the taxes owed, parents could only receive a maximum of $ 1,400 in reimbursement. These households must also have earned an income of at least $ 2,500. The change could make 20 million more children eligible.