The new president is keeping up with his predecessor and putting more money into the market. Biden’s plan was passed by both houses thanks to the Democratic majority, and is predicted to be signed by the president on March 14th, a stimulus at the sum of $1.9T.
According to the plan, any US citizen/resident that meets the criteria detailed in the graph below, will receive up to $1,400 per person (regardless of age, like the second check). The stimulus will be based on data from the 2020 or 2019 reports, according to what was filed. This allows for some flexibility with the 2020 filing dates.
Like its predecessors, this plan also requires having an SSN for eligibility, but unlike the first stimulus check, having a partner or dependent with an ITIN does not annul the eligibility of the rest of the household.
In addition, the plan will increase the Child Tax Credit for 2021. The law today permits a credit of up to $2,000 per child 17 and under, of which $1,400 can be received as a tax return; in 2021, this return will increase to $3,000 or $3,600 for a child under 6, which can be fully received as a tax return. Moreover, the age of eligibility will go up to 18. The big difference is that contrary to every year in which you file and then get the return, in 2021 up to 50% of the return will be distributed over the year, and the rest will be supplemented while filing. It would be interesting to see how the IRS, with its limited workforce and obsolete computer systems, will adapt to this change.
This increase will also be limited according to the conditions detailed in the graph above. This means that a citizen married to a non-citizen, head of household, married couple with one child will get the full return only if they earned less than $75,000, $112,500 or $150,000, respectively. Those who earned more will be entitled to returns according to the old law.
