With another year of pandemic life coming to a close, the economy continues to try to revive and bring more Americans into financial stability.
No one expects Washington to introduce more large-scale stimulus checks, but many people are still worried about paying all their monthly expenses as the coronavirus rises again with the omicron variable and inflation drives prices up.
Much of the remaining government COVID relief is aimed at more targeted groups, and one of those smaller groups of Americans will get their next stimulus payment in 2022. Certainly, many families expecting money will need it to cover bills or deal with debt.
Here’s who can expect more stimulus payments
As a background, the federal government still gives select workers incentive payments, and states have used some of their federal subsidies to provide bonuses to teachers, with some stimulus checks issued to state residents who meet income requirements.
But another group that qualifies for stimulus payments may surprise you: babies born in 2021. New Americans qualify for payments of up to $1,400 from the third (and possibly last) round of federal stimulus checks that millions of people received in March. To qualify for the full amount, your family must meet the income requirements: $150,000 for married couples filing a joint return or $75,000 for singles.
Qualified new parents who report to the IRS that they have a child — or children — when they file their 2021 taxes next year will still receive an incentive check for those children.
Additionally, people with newborns in 2021 may not realize that they qualify for the expanded child tax credit that is part of the government’s COVID stimulus package.
You could have chosen to report your new family member to the IRS this year for the agency’s early monthly tax credit payments in 2021. If you don’t, you’ll get the full $3,600 credit when you file your next tax return in 2022 and summon The child as a dependent for the first time.
Create your own motivation
Whether you have more stimulus money on your way or not, you can help yourself by finding new savings. Some ideas:
Are you carrying a lot of student loan debt? If your school loans are from a private lender rather than the government, the federal halt to payments does not apply to you. But you may have the option to pay off your student loan sooner. Refinancing can lower the interest rate and possibly shave years of your payments.
If you hold multiple credit card balances and other high-interest debt, you may want to convert them into a single debt consolidation loan. You will only have one payment to the budget, and a lower interest rate will lower the cost of your debt, and you can pay it off faster.
Prices can be all over the place when shopping online, so be sure not to overpay. A price comparison tool that automatically searches for better deals and coupons before you click buy.
You don’t need another motivational check – or a lot of money at all – to put a stop to the stock market or to expand your investments. A popular application that helps you build a diversified portfolio by investing your “change surplus” from your daily purchases.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.