As the year winds down, one majorly good change of 2021 — the expanded and beefed-up child tax credit that takes the form of monthly, guaranteed cash for parents — will be disappearing alongside it, barring a near miracle. And while direct cash payments appear to be gone (for now), certain parents will be able to qualify for one more $1,400 stimulus check in 2022 at tax-filing time. But there are different criteria to receive this boost than qualifying for the Child Tax Credit. Here’s what you need to know.
Is there another $1,400 stimulus, and who qualifies?
While the Child Tax Credit is all but done at the end of this month, some parents are going to receive an additional check in 2022. Unfortunately, it’s not available to everyone, but for parents who welcomed a new baby into the world, or someone who has a new dependent. This is the final $1,400 stimulus for if you had a baby in 2021 — and it means that there will be more money next year. Come tax time, those specific parents will receive an additional stimulus of $1,400.
The reason why? The stimulus checks people received in 2021 were based on tax returns (and dependents) from 2019 and 2020. This stimulus check will be a tax cut of $1,400 based on whether or not you brought a new babe into the world.
How do I get the new $1,400 stimulus?
According to ABC News, this tax credit won’t come as a direct check as the Child Tax Credit stimulus, or the three separate stimulus checks of $1,200, $600, and $1,400 did. Instead, this payment comes from the American Rescue Plan and will be included in the pay after filing 2021 taxes this spring.
In order to claim the new $1,400 stimulus for having a baby, Insider reports that parents can receive the extra money after filing their tax return in 2022. The payment might be smaller if parents made just below $160,000 that year.
Are there more cash stimulus payments to come?
It’s been made pretty clear that these stimulus checks have been hugely beneficial for parents, especially those living near the poverty line. And while the stimulus checks are done, there was hope the Child Tax Credit — which shrunk child poverty to an enormous degree and has been overwhelmingly positively received — would continue into 2022, however, it looks like that’s being put on ice.
Democratic Senator Joe Manchin essentially killed the Child Tax Credit which was a part of Biden’s Build Back Better plan after removing his support. Without his support, it’s stalled, and what Manchin is asking for in order to stand behind the bill seems unreasonable.
So far, the Child Tax Credit hasn’t been extended into 2022 meaning parents have received their last payment until they get the second half of their tax cut at tax-filing time. However, those who welcomed a baby in 2021 will at least receive some extra support next year – but it’s far less than what they – and every other parent – need and deserve.