One of the first important legislative achievements of the Biden administration was the American Rescue Plan Act. The Act was passed into law in March 2021 to help American families who are still dealing with the effects of the COVID-19 epidemic.
Many major sections of the American Rescue Plan Act were focused on providing financial compensation for the massive destruction caused by a coronavirus. Stimulus payments were the most important part of the Act for many Americans.
Much of the stimulus money made available by the American Rescue Plan Act has already been spent. But it isn’t the case in every circumstance. Even though the Act is already a year old, it may still have an impact on stimulus funds in 2022.
The effect of the American Rescue Plan Act on stimulus funding in 2022
For a few critical reasons, the American Rescue Plan Act will continue to have an influence on COVID-19 financial assistance.
The American Rescue Plan Act still owes some individuals money.
Although many individuals and families have received all of the monies promised under the American Rescue Plan Act, this is not the case in all cases, and millions of people are still due money.
The American Rescue Plan Act, for example, stipulated:
- A stimulus payment of $1,400 is available to qualifying people and their dependents.
- A fully refundable enhanced Child Tax Credit of up to $3,600 for eligible children under the age of six and $3,000 for older children is now available. This is an increase from the prior $2,000 credit, of which only $1,400 was refundable.
However, the $1,400 stimulus checks did not get to everyone.
People who did not submit recent tax returns or give the IRS their financial information may not have received any reimbursements. Those whose income was too high in 2020 to qualify for stimulus checks but dropped below the threshold in 2021 may also have missed payments. When submitting their 2021 tax forms, these people may claim their stimulus money from the American Rescue Plan Act.
Parents who were eligible for the increased Child Tax Credit often did not get all of their benefits until later. The American Rescue Plan Act permitted the payment of these tax credits in advance from July through December at a rate of $250 or $300 per month. As a consequence, only half of the credit was paid out. The other half is owing to parents, who may claim it while submitting their taxes in 2021.
Finally, in 2021, everyone who added a dependant may have been eligible for both the $1,400 stimulus payment and the increased Child Tax Credit. As a consequence, after taking into account both the $1,400 payment and the $3,600 credit for children under the age of 6, these people might owe up to $5,000 per dependant they added last year.
Some states are using COVID relief money to make stimulus payments
There’s also a chance that the American Rescue Plan Act may have an impact on stimulus money in 2022.
States were given funds to support persons who were in need as a result of the Act. Some states have utilized federal monies to give stimulus assistance to people who qualify. If there are monies left over in 2022, it’s feasible that more will do so.
Because of the American Rescue Plan Act, not everyone will receive extra stimulus money this year. However, a sizable portion of the American population will. If you’re one of the millions of people who may anticipate extra money in their bank account in 2022, you should look into the federal and state restrictions concerning stimulus cheques.
Alert: until 2023, the highest cashback card we’ve found offers a 0% initial APR.
It might cost you a lot of money if you use the incorrect credit or debit card. Our expert recommends this top selection, which has a 0% start APR till 2023, a crazy cashback rate of up to 5%, and none of it comes with an annual charge.