Congress is nearing the finish line as lawmakers rush to approve President Joe Biden’s $ 1.9 trillion aid package in mid-March.
Included in the package is the third round of stimulus checks – for up to $ 1,400 this time – plus an extension of federal emergency unemployment benefits, an expanded child tax credit and more.
So, if you need more help to pay debts or cover household expenses, you can start receiving it in a few weeks.
Taken together, the government’s relief this year could provide a family of four with a pile of money, totaling at least $ 14,000, according to a new analysis. See how your family could receive such an unexpected fortune in 2021.
How does $ 14,000 math work?
Consider the Smiths, a hypothetical family of four with two adults and two children, 7 and 10. As long as they met the income criteria for stimulus checks, the Smiths would have received $ 2,400 in January of the second round of payments: $ 600 for every adult and every child.
If Congress passes the current bill and Biden signs it, the family will receive another $ 1,400 per person, for a total of $ 5,600. Add that to the $ 2,400 at the beginning of the year and you’ll have a total of $ 8,000 on stimulus checks for the household.
Another part of the president’s COVID rescue package increases the child tax credit to give low and moderate income families $ 3,000 for each child between 6 and 17 years of age in 2021. Half of that money would be paid in monthly installments (a type other than “stimulus verification”) during the second half of the year.
Thus, the Smiths would receive an additional $ 6,000 for children – for a grand total of $ 14,000 in the government’s relief this year.
Some families may receive even more than that, notes a report by financial services company Raymond James.
How do you collect more than $ 14K?
Families with children under the age of 6 can expect to receive credits of $ 3,600 per child instead of $ 3,000.
So, let’s say your parents qualify for stimulus checks and have two children aged 3 and 5. Throughout the year, your child’s total tax credit would be $ 7,200 – bringing your Uncle Sam luggage this year to a colossal $ 15,200.
There is even more money if you are among the millions who lost their jobs during the pandemic.
The federal government has been paying unemployment bonuses in addition to the usual state benefits. Current payments of $ 300 a week are expected to run out soon; the relief bill would increase those federal benefits to $ 400 a week and extend them until August.
Given all the various types of COVID federal aid offered to families and individuals this year, “the US consumer will be largely in the best financial position they have been on average for at least 40 years (probably always),” writes Tavis McCourt , Raymond James analyst.
But McCourt adds that while cash flow increases the chances of an economic recovery, it threatens to increase inflation in the short term.
What if you don’t qualify for $ 14,000?
Just this week, Biden agreed to an agreement with more conservative Democratic senators who would target stimulus checks and impose new income limits. Families with an income above $ 160,000 (or $ 80,000 for singles) will completely miss the third round of direct payments.
If your family does not qualify for stimulus checks or child credit and you need more money yesterday, here are some things you can do:
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Cut the cost of your debt. Credit is convenient, but interest kills. If you are accumulating a lot of expensive interest today, there is a better option. Make your debt easier to carry – and unload earlier – by doubling your balances on a single, lower-interest debt consolidation loan.
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Reduce your insurance bills. Car insurers have been offering discounts to drivers who stay close to home during the pandemic. If your insurance company doesn’t budge, it may be time to look for a better deal. And while you’re looking, you can save hundreds on your home insurance by comparing rates to find a lower price.
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Reduce mortgage payments by refinancing your mortgage. If you didn’t look for a lower interest rate for your home loan last year, what are you waiting for? Rates remain historically low and refinancing your mortgage may reduce your monthly payment.
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Reduce your budget and “make your own” stimulus check. By finding some creative ways to cut back, you can reorganize your budget to find another $ 1,400. Cut cable service or any monthly entertainment subscription you are not using. Do you have a hobby or special talent? Turn it into a sideways movement to generate extra income. And download a free browser extension that will automatically search for better prices and coupons whenever you shop online.