How much was the first stimulus check per child?
Families are set to receive more to get them through the economic crisis brought on by covid-19 with children receiving bigger stimulus checks than before.
President Biden and Democrats have an opportunity to push forward new legislation to tackle the continuing economic fallout from the covid-19 pandemic. The American Rescue Plan, a sweeping $1.9 trillion proposal, will be a continuation of earlier relief packages as well as an opportunity to create more equality.
In the spring of 2020 lawmakers in Washington moved quickly to put together and pass the CARES Act, a $2.2 trillion package. Part of the stimulus bill included Economic Impact Payments which were advanced payments on tax rebates for 2020 income tax filings. However the rules left out child dependents over the age of 16 and children from mixed-status families.
Additional stimulus payment for dependents
Under the provisions of the CARES Act households should have received $500 stimulus check for each child dependent. The payments were sent out automatically based on past tax filings for the tax year 2018 or 2019, the pandemic struck while the IRS was processing the 2019 filings. Families could claim dependents according to the IRS child tax credit, which leaves out older dependents over 16 years of age.
In December another round of covid-19 relief was approved, this time sending families $600 direct payments. The bill did fix the glitch with payments going to mixed-status households, where at least one parent is not a resident alien but once again older dependents were left out.
Under Biden’s new plan, child and dependents over the age of 16 will qualify for a check of up to $1,400. Whether households will receive the $600 stimulus check retroactively for older dependents hasn’t been settled yet. Exactly which dependents over the age of 16 hasn’t been stated but could include students under 24 and most likely adults with disabilities and older adults who require care.
Child tax credit
The American Rescue Plan contemplates more generous child tax credits for one year. Qualifying households would get a credit of $3,000 a year for every child aged between six and 17, and $3,600 for every child under six. Presently, the child tax credit is worth $2,000 per child under the age of 17 who a parent claims as a dependent.
Biden’s plan would also make the credit fully refundable and remove the $2,500 earnings floor. Under current tax law up to $1,400 of the child credit is refundable for some lower-income Americans with children but those that earn less than $2,500 couldn’t get a refund for the credit.
To qualify, the child must have a social security number, be related to you and generally live with you for at least six months during the year.
Will Biden’s coronavirus relief package pass?
Biden met with 10 GOP Senators to hear their counter proposal on Monday. The meeting was a cordial affair according to the White House. Their plan however left out funding for state and local governments which is a non-starter for Democrats. The White House and Democrats want to move quickly and are set to move forward with or without Republican support.
Now that Joe Manchin has signaled that he is onboard with using reconciliation to get the American Rescue Plan through the Senate the Democrats have the 50 votes plus “one” that they need. It will be seen if they can get all of the pieces of the sweeping legislation past the Senate parliamentarian who will decide if they meet the requirements to use reconciliation. Under reconciliation the Democrats can avoid a filibuster, in which case they would need 60 votes, and pass the bill with a simple majority, as long as the bill deals solely with budgetary matters.