The COVID pandemic caused a lot of financial hardship for people. This is especially true for those who were already struggling with their finances before the pandemic. Since so many people were in need, the government handed out three rounds of stimulus payments (known as economic impact payments). However, many people still felt that they needed more financial support. Luckily, there is another opportunity to receive a stimulus payment for qualifying Americans. Many people don’t realize that they could receive even more stimulus assistance in 2022 thanks to their tax return (and the American Rescue Plan).
How Can People Get Another Stimulus in 2022?
Many people don’t realize that the third round of stimulus payments actually came from the Recovery Rebate Credit (RRC). When the third round of payments were given in March 2021, they were basically an advance on a part of the total amount that an eligible individual could receive. If an individual didn’t qualify for the third payment, or didn’t receive the full amount, then they may be able to claim additional funds from the 2021 RRC. People can claim the remaining amount of this credit when they file their 2021 taxes in 2022. The total assistance that the credit can provide is up to $1,400 for a single filer (or $2,800 if married filing jointly) plus an additional $1,400 per each eligible dependent of the taxpayer. The funds can either reduce any tax that you would owe for 2021 or be included in your tax refund (which you would get in 2022). There are other qualifying requirements that need to be met in order to receive this stimulus which are:
- Eligible Family Status
- Meeting Income Requirements
- Qualifying Citizenship Status
Eligible Family Status
In order to receive an additional $1,400 per dependent, they must meet eligibility requirements! Dependent must:
- Be younger than 19 years old by the end of the year
- Can be older than 19 years old if they are a student
- Can be any age if they are permanently disabled
- Have a specific relationship to the taxpayer like their child, brother, sister, foster child, etc.
Meeting Income Requirements
Not everyone will be eligible for this tax credit. Income requirements are an important part of eligibility! Individuals cannot have their adjusted gross income be more than $75,000. The head of household cannot have their adjusted gross income be more than $112,500. Finally, a married couple filing jointly cannot have their adjusted gross income be more than $150,000.
Qualifying Citizenship Status
Only those that are Americans or have a qualifying citizenship status can receive the assistance from this stimulus tax credit. An example of a qualifying citizenship status would be a U.S. resident alien. If you are unsure about your eligibility due to your citizenship status, you may benefit from getting in touch with a tax professional.
Who is Ineligible?
There are some conditions that will automatically disqualify individuals for this credit like:
- They are claimed as a dependent on another taxpayer’s return.
- They do not have a qualifying citizenship status like a non-resident alien.
- There isn’t a valid social security number by the due date of the tax return.
Stimulus Assistance for States
Not every American will be eligible to receive assistance from the RRC stimulus. While right now there doesn’t seem to be any plans for another national round of stimulus payments, there may be more options than you realize. States have the power to provide stimulus assistance to their residents. Not every state was able to give out another stimulus payment, but a few were! Some of the states that provide another stimulus option include:
Arizona
Many industries across America are feeling the effects of the worker shortage. As a way to deal with this issue, Arizona offered $2,000 to people that get a job after they have received unemployment benefits during a certain timeframe. Sadly, the application period for this window is closed.
California
California acknowledges that families besides low-income households need assistance as well! That is why one specific stimulus opportunity available was designed for qualifying middle-class households. These households had the chance to receive up to $1,100 in stimulus assistance. The first $600 will be for families that meet eligibility criteria. Those same families could receive another $500 if they have children!
Florida
During the pandemic, lots of people still had to be on the frontlines. Work continued on for them, even as the rest of the country shut down. Thanks to Florida’s Heroes Initiative, eligible first responders like paramedics, firefighters, EMTs, and police officers could receive up to $1,000. Other workers like eligible teachers and principals could also receive disaster relief payments worth up to $1,000!
Maine
Maine is another state that wants to focus support on those who worked throughout the pandemic. Maine’s Department of Administrative and Financial Services (DAFS) is giving $285 stimulus payments to those who worked throughout 2020. If eligible, people can expect to get these funds in the form of a mailed check. Eligibility criteria for these payments include:
- Worked continuously through 2020
- Meets income requirements
- Is not claimed as a dependent on another taxpayer’s tax return
- Filed a individual income tax return by October 31st, 2021
Maryland
Those that filed for the Earned Income Tax Credit (EITC) could get up to $500 in stimulus assistance. Thanks to the Maryland Relief Act of 2021, individuals that filed for the EITC could get up to $300 while families who filed for the EITC could get up to $500. Recipients of these funds don’t even have to apply in order to receive them!
Michigan
Unlike some other states, Michigan handed out bonuses of $1,000 to full-time childcare professionals. This is thanks to the Child Care Stabilization Grant. The bonuses that these professionals received are given through employers so they won’t need to apply in order to get the aid.
Tennessee
Educators have been receiving love from all over the country because Tennessee also aims to provide additional support! Eligible teachers may be able to receive stimulus funds. However, the amount that a teacher can receive varies based on the district. That is why it is important to confirm what you could get with your locality.
Vermont
Vermont already provided additional assistance to it’s residents back in January 2021 with the Frontline Employees Hazard Pay Grant Program. However, Vermont is providing even more assistance through a reimbursement opportunity. Vermont wants people who work in specific industries to move there. That is why they are offering a reimbursement for up to $7,500 in eligible moving costs. This support opportunity came to an end. However, another stimulus option is the New Remote Worker Grant which may be able to provide support until the funding of $130,000 runs out.
Overall
Many Americans didn’t realize that there are plenty of opportunities for additional stimulus funds. There is a national opportunity with the Recovery Rebate Credit (RRC) but there are also state-only opportunities. There may be even more assistance opportunities that become available to those in need. That is why it is important to continuously keep up to date with what is going on for both your state and at the national level in terms of stimulus assistance. If you aren’t eligible for existing stimulus opportunities then you still may have hope! You will want to be sure to check out other assistance programs at both the state and federal level.
