For millions of Americans, January was the first time in a long time that they did not get any stimulus money. For the most part, February will bring more of the same — a hole in their budgets where government payments used to be, while costs continue to rise, rise, rise.
As we enter the second month of the year, some households will be eligible to collect any remaining stimulus monies, mostly via tax refunds, the first of which the IRS will begin sending this month.
Payments of the Child Tax Credit aren’t expected to resume in February — or at all in 2022, it seems.
For the first time in almost a year, millions of families were without an advance child tax credit payment in January. The credit paid $300 per month for young children under the age of five and $250 per month for older children under the age of seventeen. Congress failed to enact legislation to extend the credit until 2022 at the end of last year, ensuring that no checks would be sent in January.
However, there was speculation that Congress would prolong the child tax credit by passing a series of minor legislation. There was a potential that qualified homes would have gotten two checks in February to make up for the missed January payment if this had occurred.
That didn’t happen, and with inflation continuing to increase, the odds of legislation passing seem to be lower today than they were last month – and the outlook was already gloomy.
One thing is certain: no child tax credit advance payment will be made in February, at the very least.
Early filers may be eligible for stimulus payments through their tax refunds.
The child tax credit was doubled to $3,600 per kid as part of President Joe Biden’s pandemic relief package — it has subsequently been reduced to $2,000 — and most individuals got half as advance payments. The remaining half is refundable, and you will get it when you submit your taxes.
If you’ve already filed or expect to do so soon, you might get the second installment of the 2021 stimulus this month. Because “by law, the IRS cannot issue a refund including the Earned Income Tax Credit or Additional Child Tax Credit until mid-February,” according to the IRS.
Up to $5,000 might be awarded to certain growing families.
Many families may be eligible for a large portion of stimulus money that they missed out on the first time around, with the first refunds expected in February. Those who delivered a baby in 2021 after the year’s stimulus payments had been computed and dispersed may be eligible for a tax return of up to $5,000.
They would get $3,600 for the entire payment of the enhanced child tax credit, as well as a $1,400 economic impact payment for the additional kid’s dependency status. They will have to submit their taxes early in order to collect the monies in February since the payment is only available via a tax refund.
Your State Might Be Able to Help
Although most Americans will not get any federal stimulus in February, a few states are still offering pandemic assistance to their populations. Florida, Tennessee, Texas, and New York are among them, but only to specified groups. No state is currently issuing checks to all of its inhabitants. The majority of states are not making any payments at all, and the majority of Americans are adjusting to life without stimulus.