The Internal Revenue Service (IRS) has already started releasing up to $2,800 stimulus payments to 9 million households last October. Recipients did not have to earn income in 2021 to receive these payments, however, there still are income limitations, says Singletary.
In October, the Internal Revenue Service (IRS) has already started releasing stimulus payments to 9 million households that may be eligible for several profitable tax credits. These tax credits are the third batch of the stimulus payments already released. Recipients who did not receive the full amount of the Economic Impact Payment under the American Rescue Plan may be able to receive this 2021 tax credit. However, to be eligible, recipients must submit their 2021 tax return.
Recipients did not have to have earned income in 2021 to qualify for the stimulus payments. However, there still are income limitations. Individual filers who have an adjusted gross income (AGI) of no more than $75,000 can receive $1,400. On the other hand, individuals who filed as head of households must have an AGI of no more than $112,500. Couples who filed jointly must have earned no more than $150,000. Both types of recipients will be able to receive $2,800 in tax credits.
Other Tax Credit Programs
According to Singletary, in addition to these stimulus payments, filers who submitted their 2021 tax return may also be qualified for the earned-income tax credit and the expanded child tax credit programs. The earned-income tax credit program can be for filers who do not have children. The American Rescue Plan increased the tax credits to be received from $543 to $1,502. On the other hand, the child tax credit program was increased to $3,600 for those who have children aged 5 and younger. For those who have children aged 6 to 17, tax credits increased to $3,000.