In addition to stimulus checks: all tax incentives that parents and retirees should be aware of

Whether or not you meet the requirements for the third stimulus check for up to $ 1,400 each, you and your family can still benefit in other significant ways if Congress passes the $ 1.9 trillion relief account this is now with the senate. (Here they are verification schedule of the third stimulus until here.)

The stimulus proposal, called the American Rescue Plan Act of 2021 (PDF), would be expand child tax credit, support affordable childcare, provide money for aging and disability services, and increase the maximum income tax credit earned for adults, including older workers. While none of these provisions are guaranteed until the law is enacted, President Joe Biden must expand care for children and the elderly in a future bill, according to The Washington Post.

Here’s everything we know now about what the plan includes to benefit parents, children and older adultsand how your family can get thousands of dollars in tax breaks this year. (We separate all the ways your family could get more money from the stimulus check time around too.)

How much money could my family receive for my children, in addition to a new stimulus check?

The American Rescue Plan includes several provisions designed to reduce child poverty rates in the United States, which could bring some families an extra injection of money this year. These include:

Stimulus checks for dependents. According to the current invoice, dependents of any age (including children, young adults or older adult relatives) will be eligible for up to $ 1,400 each in stimulus payments. This money will not come in the form of your “own” check, however, but will be added to the family total.

Expansion of Child Tax Credit. Parents can generally claim a CTC of up to $ 2,000 in their taxes for each child under the age of 17. The American Rescue Plan states that families with children under the age of 17 would receive a credit of $ 3,000, while those with children under 6 years of age would receive a credit of $ 3,600. It also makes credit fully refundable, removing the dollar cap and earnings cap that currently prevents many low-income families with children from receiving full credit, according to the Center on Budget and Policy Priorities. (Read more details about the changes in the child tax credit here.)

Expanded tax credits for daycare centers. To make the daycare more accessible to families, the plan offers a daycare tax credit for children under 13 – a total of up to $ 4,000 for one child or $ 8,000 for two or more children. The credit would be refundable and available to families earning less than $ 125,000 a year. Those earning between $ 125,000 and $ 400,000 would receive a partial credit (find out what is your adjusted gross income here) The plan also calls on Congress to provide funds to keep daycare centers open and improve daycare salaries and benefits.

What types of payments or tax incentives does the plan include for the elderly?

The American Rescue Plan includes funding for programs designed to help the elderly financially as well. These include:

Stimulus checks for older adults, including dependents. Under current law, older adults (including recipients of SSI or SSDI benefits) would be eligible for a third stimulus check in up to $ 1,400, if they meet eligibility requirements. This includes older adults who are listed as dependent on someone else’s taxes, although their share of the stimulus money was added to the total family value. (To discover all rules on stimulus checks for older adults.)

Expansion of Earned Income Tax Credit. Designed to benefit people with lower income, this tax credit can reduce your taxable income and wages. The aid plan proposes to increase this credit for childless adults from about $ 530 to $ 1,500, and to increase the income limit for the credit from $ 16,000 to $ 21,000. It would also expand the eligible age group, removing the age limit for older workers. And if your earnings fall in 2021 due to the pandemic, you won’t see your credit reduced. (Know more about how to claim income tax credit earned this year.)

More funding for aging and disability services. The American Rescue Plan includes additional funds for services programs for the elderly and disabled, but it does not detail where exactly that money would go.

For more, discover how a third check could bring more money to your family, and when the IRS could send the third stimulus, check.