By: Mo Juenger, World News Editor
President Joe Biden signed the $1.9 trillion America Rescue Plan into law on Thursday, prompting taxpayers to relook at those who will receive a check.
Adult dependents, a category which largely contains students between the ages of 19 and 24 whose relatives pay more than 50% of their income, are eligible to receive up to $1,400 in stimulus aid. The IRS will send this check, via mail or direct deposit, to the person who claims the adult dependent on their taxes.
This means that a college student or adult dependent will not receive the $1,400 payment. Instead, their parent or guardian will receive the check, similar to a child dependent tax credit.
The requirements for taxpayers have also tightened, with a cap of $80,000 income for an independent to receive any stimulus. Heads of households have a maximum income level set at $120,000 and joint filers move to $120,000.
Additionally, universities are receiving a larger kickback from the plan, with $40 million being allotted to colleges’ emergency relief funds. These funds are required to be used on financial aid for students, through scholarships, grants or other forms of payment toward their undergraduates.
The amount of funding any school receives is dependent on how many Pell Grant recipients are enrolled. Pell Grants, which can be attained by completing the Free Application for Federal Student Aid (commonly known as the FAFSA), imburse student tuition based on level of aid required and a student’s credit hours.
Students who are also parents will qualify for a new addendum to the relief bill: a check and tax credit. Parents will receive up to $3,600 per child, depending on their income level.
Individual filers will be eligible for the credits if they receive less than $75,000 per year, and heads of households qualify with up to $112,50 in income. Couples who file jointly are eligible at an income of $150,000.
These checks will also depend on your child’s age, with parents of children five and younger receiving $300 per month per child and parents of children ages six to 17 receiving $250 per month per child. Payments are planned to start in July.
All income levels for all types of stimulus relief is based on an individual’s most recent tax return, whether that be from 2019 or 2020.
Categories: U.S. & World News