Remaining $1,400 pandemic relief checks to be sent ‘shortly’
Congress also expanded child tax credit in the American Rescue Plan
If you haven’t already received your $1,400 stimulus check, the U.S. government is expected to send out the remaining payments this month, according to the Internal Revenue Service and Senate Majority Leader Charles E. Schumer.
“Many people have already gotten their checks, but they’re going to mail the rest of them out shortly after Easter for people who don’t have a direct way to pay, and then the vast majority of people in the Capital Region will get them,” Schumer, D-N.Y., said at an event in Glens Falls Friday.
In addition, the IRS in July will start making monthly payments of $250 per child to parents who make up to $150,000 for joint filers or $75,000 for single filers.
Parents of children up to age 6 will receive monthly payments of $300 for each child in that that age group.
Congress expanded the child tax credit in the American Rescue Plan, the COVID-19 relief law signed by President Joe Biden last month. Congress increased the annual child tax credit from $2,000 to $3,000 per child, or $3,600 for children under 6. For 2021, the IRS will award that credit in monthly advance payments instead of as a lump sum when parents file their taxes.
Also, the legislation also enables parents who do not file taxes because their income is too low to receive the credit for the first time. Democrats say the expansion of the child tax credit will lift half of the nation’s children out of poverty. Schumer said 3.56 million children in New York will benefit from the payments, including 680,000 who live below the federal poverty line.
“The $1,400 checks will take us through the next few months, but these checks which will start in July will take us through the rest of the year,” Schumer said. “It’s going to give a real kick to the economy and take our kids out of poverty.”
Democrats hope to make the expanded child tax credit permanent and may try to do that with the next major bill Biden will propose, the American Families Plan, according to House Appropriations Chair U.S. Rep. Rosa Delauro, D-conn. Republicans have other ideas on how to permanently change the child tax credit and oppose the strategy implemented by Democrats.
“We would support increasing the Child Tax Credit to $3,500, and $4,500 for young children,” said Republican sens. Mike Lee of Utah and Marco Rubio of Florida. “However, we do not support turning the Child Tax Credit into what has been called a ‘child allowance,’ paid out as a universal basic income to all parents. That is not tax relief for working parents; it is welfare assistance.”
On March 19, the head of the IRS warned Congress that his agency might be delayed in starting the child tax credit payments in July because the IRS is swamped by the current tax filing season and handing out stimulus checks, also known as economic impact payments. The IRS did not respond to a request for comment Friday.
The IRS recently extended the 2020 tax filing deadline to May 17.
The agency is working to distribute the third round of economic impact payments that Congress approved to help Americans during the pandemic.
The payments are $1,400 per adult and dependent for individuals making up to $75,000, or $150,000 for married couples. People making more income than that will receive smaller payments or possibly no payment. The payments are being distributed by the IRS by direct deposit, mailed debit cards or checks.
The IRS said Thursday it will soon distribute another batch of payments, bringing the total disbursed to 130 million payments worth about $335 billion.
Some people may receive payments now who got a third-round stimulus check earlier based on their 2019 tax income, but their 2020 tax filings indicate they deserve a larger payment. People who never previously received an economic payment may get their payments now if they filed their 2020 taxes.
Payments have primarily been made to people who have filed their 2019 or 2020 taxes. But on Friday, the IRS will start processing payments to people who don’t file taxes, including Social Security beneficiaries, Railroad Retirement beneficiaries and others. The agency will also review and start making payments to people who receive Veterans Affairs benefits, but do not pay taxes.
In December, Congress approved a second round of stimulus checks of $600. The IRS distributed those payments already.
Last March, in Congress’s first COVID-19 relief bill, it included $1,200 stimulus checks. A Times Union investigation in December found hundreds of New Yorkers still had not received their $1,200 payment. These people were directed to claim the payment on their 2021 taxes.