While there are no plans for a fourth stimulus check for Americans, a huge number of people will be eligible for funds distributed in 2021.
According to Fortune, eligible parents of 2021 newborns will receive another $1,400 stimulus check when they file their tax returns next year.
The third wave of direct payments, which was announced earlier this year, was based on the most recent tax return filed, so it didn't account for 2021 babies. As a result, the check will be applied to the tax returns of the parents and guardians in 2021.
To be eligible for the payments, parents of children born this year must meet the same income standards as prior stimulus recipients: $150,000 for married couples filing joint tax returns or $75,000 for individual taxpayers.
The Internal Revenue Service (IRS) will be notified of a child's birth when eligible parents file their 2021 tax returns in 2022.
In addition, when tax returns are completed, qualifying parents will get $3,600 in monthly installments for the Child Tax Credit that was provided to them in 2021.
Some parents may have chosen to notify the IRS about the impending birth of their child in order to receive the monthly payments in 2021.
How many families are still owed a $1,400 stimulus payment? It'll most certainly be in the millions, but we won't know for sure until birth figures for 2021 are out.
Despite early forecasts that the pandemic would result in a surge in births, births actually decreased during the pandemic. There were 3.61 million births in the U.S. in 2020, down from 3.75 million in 2019. Of course, because pregnancies are typically nine months long, we won't know if the pandemic caused a "baby bust" until the birth statistics for 2021 are released.
The $1.9 trillion American Rescue Plan, which aims to help the US recover from the coronavirus (COVID-19) pandemic, increased the tax credit benefit for one year, increasing it from $2,000 per child to $3,600 per dependent for qualifying families.
If President Joe Biden's $1.75 trillion proposed budget passes, the Child Tax Credit might be extended for another year and eligibility increased to the poorest Americans, according to a statement released in October.
While the bill cleared the House, it still needs a simple majority in the Senate to pass, and both Senators Krysten Sinema (D-Arizona) and Joe Manchin (D-West Virginia) are opposed.